Getting Your Pension Back When Leaving Japan — The Lump-sum Withdrawal Guide
Leave this money alone and it disappears
The kosei nenkin and kokumin nenkin premiums you paid while working in Japan — many people assume that money is simply lost when they leave. It isn't. Claim within 2 years of departure and you can receive up to 5 years (60 months) of contributions back. This is the lump-sum withdrawal (dattai ichijikin) system. For someone who worked 5 years, it's typically several hundred thousand to over a million yen.
Who qualifies
- You are not a Japanese national
- You paid into the pension for 6 months or more
- You no longer have an address in Japan (moving-out notification filed, then departed)
- Claim within 2 years of your departure date — there is a deadline
- You have never received disability pension or similar
- Your total enrollment is under 10 years (at 10+ years you qualify for the old-age pension instead)
How much do you get?
Kokumin nenkin (national pension): final-year premium × 1/2 × a month-count coefficient (6–60). No tax is withheld.
Kosei nenkin (employees' pension): average standard remuneration × 18.3% × 1/2 × coefficient. For a full 5 years, roughly 5.5 months of your average salary. However, 20.42% is withheld at source — and most of that tax can be recovered. (Next section.)
The step nobody tells you about: recovering the 20.42% withholding
The lump sum is treated as retirement income under tax law. Retirement income comes with a deduction of ¥400,000 × years of service, so in most cases the proper tax due is close to zero, and most of the withheld 20.42% is refundable.
The process: ① before departure, designate a tax agent (nozei kanrinin) at your tax office (a friend or a professional in Japan) ② after receiving the lump sum, the tax agent files a final return electing retirement-income taxation ③ you receive the refund. If you have nobody to act as agent, paid services exist.
US citizens: think twice before claiming
The US–Japan social security agreement (2005) includes totalization — your Japanese coverage periods can be combined with your US Social Security record to help you qualify for benefits. If you take the lump sum, those periods are permanently removed from totalization. If combining periods could earn or increase a US benefit, claiming the lump sum may cost you more than it pays. Compare both scenarios before deciding.
The conclusion differs by nationality — UK nationals, for example, have an agreement without totalization, so claiming is often favorable, as it is for Koreans and Chinese:
| Nationality | Agreement with Japan | Lump-sum verdict |
|---|---|---|
| USA | Agreement (2005), with totalization | ⚠️ Claiming erases totalization periods — compare scenarios first |
| Philippines | Agreement (2018), with totalization | ⚠️ Same caution |
| Brazil | Agreement (2012), with totalization | ⚠️ Same caution |
| UK | Agreement, no totalization | Claiming is often favorable if under 10 years |
| Korea / China | Agreements, no totalization | Same — often favorable under 10 years |
| Vietnam / Nepal / Indonesia / Myanmar | No agreement | The lump sum is effectively the only recovery route |
How to claim, in short
- Before departure: moving-out notification (removes you from the resident register) + tax-agent designation (if you want the refund step too)
- After departure: submit the lump-sum claim form to the Japan Pension Service with 4 attachments — ① passport copy (name, date of birth, nationality, signature, residence-status pages) ② proof you no longer have an address in Japan (in principle unnecessary if you filed the moving-out notification; those enrolled since before July 2012 may need a removed-resident record) ③ proof of your receiving bank account (bank, branch, account number, in your own name — overseas accounts accepted) ④ proof of your basic pension number (pension book or notification)
- With complete documents, payment arrives about 4 months after acceptance (official JPS estimate)
- The tax agent files the return and the withheld tax is refunded
Check the exchange rate before sending it home
The lump sum is paid in yen. When remitting home, compare exchange rates and transfer fees before picking the timing and the service. Japanizen's calculators display the current rate.