iDeCo Guide
iDeCo Complete Guide for Foreigners【2026 · Eligibility · Leaving Japan · vs NISA】
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📋 Table of Contents
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📢 iDeCo reform from December 2026 (planned)
- Under the pension reform law passed in 2025, iDeCo is set to expand from 1 December 2026 (planned).
- Higher contribution caps: for employees and civil servants, up to ¥62,000/month (merging the caps that previously differed by whether you had a company pension); for the self-employed, up to ¥75,000/month (combined with the National Pension Fund). *Currently it is ¥23,000/month for employees without a company pension.
- Eligible age widens from under 60 to under 70 (subject to certain conditions and transitional measures).
- As this has not yet taken effect, current rules apply for now. Please check official sources for the latest status.
Source: Ministry of Health, Labour and Welfare (MHLW)
💡 Key Points
- iDeCo requires enrollment in Japan's public pension system (National Pension or Employees' Pension) and offers tax benefits such as full income tax deduction on contributions, tax-free investment gains, and deductions when receiving payouts.
- If your National Pension premiums are unpaid or exempted, you cannot enroll in iDeCo, so you should first check your pension enrollment and payment status.
- In principle, funds cannot be withdrawn before age 60, but if you return to your home country and become a non-resident, you can choose to continue as a person giving investment instructions, or, if you meet the requirements, choose to receive a lump-sum withdrawal payment.
- The lump-sum withdrawal payment has conditions such as being unavailable if your enrollment period exceeds 5 years or your asset amount exceeds 250,000 yen, and it is recommended to consider how to use iDeCo alongside NISA depending on when you plan to leave Japan.
What is iDeCo?
iDeCo (Individual-type Defined Contribution Pension) is Japan's private pension scheme: you contribute monthly, choose investment products, and generally receive the funds at age 60+. It sits as the "third tier" on top of Japan's public pension. Tax benefits apply at all three stages: contribution, accumulation, and withdrawal.
💡 iDeCo vs NISA: NISA can be withdrawn anytime (tax-free investing); iDeCo locks funds until 60 (dedicated retirement). But iDeCo's tax savings are far larger because contributions are fully deductible from income.
Foreigner Eligibility
iDeCo requires enrollment in Japan's public pension — stricter than NISA:
- Age 20–64
- Enrolled in National Pension or Employees' Pension (company employees automatic)
- Japanese address (registered residency)
- My Number
- Not currently exempted from National Pension premiums (students under exemption cannot join)
- No unpaid National Pension premiums
⚠️ Foreigners not paying National Pension cannot join iDeCo. Resolve pension status first.
3-Stage Tax Benefits
- Contribution stage: All contributions deducted from taxable income. Example: ¥5M annual income, ¥23K/month contributions → annual tax saving ~¥83K
- Accumulation stage: Investment gains are tax-free (normally taxed at 20.315%)
- Withdrawal stage: Tax breaks at retirement (retirement income deduction or pension deduction)
Contribution Limits by Job
- Self-employed / Freelance: ¥68,000/month
- Employee without corporate pension: ¥23,000/month
- Employee with corporate DC: ¥20,000/month
- Public servant / with DB plan: ¥12,000/month
- Homemaker (3rd insured): ¥23,000/month
iDeCo vs NISA — Which to Choose
- Prioritize iDeCo: Staying in Japan 5+ years, income ¥4M+, want tax savings
- Prioritize NISA: Unsure when you'll leave, need liquidity, limited monthly surplus
- Both: Income ¥4M+ and planning permanent residence = optimal
For the differences between iDeCo and NISA and how to use both, see the NISA Guide for Foreigners.
How to Join
- Verify National/Employees' Pension is current
- Choose a broker (SBI, Rakuten, Monex)
- Request application kit → Employees need employer's certification form
- Submit → 1–2 months review → Begin contributions
Recommended: 🥇 SBI Securities (large member base, wide product lineup, low fees) 🥈 Rakuten Securities 🥉 Monex Securities
For choosing a brokerage account for iDeCo and investments, see the brokerage account opening guide.
When You Leave Japan
iDeCo cannot be withdrawn before 60 in principle, but there are special rules when you become a "non-resident":
- ① Continue as "investment instructor": Stop contributions, keep investing until 60
- ② Withdraw lump sum: Must satisfy: foreign national · no longer National Pension insured · assets under ¥250K OR contribution period under 5 years · within 2 years of losing eligibility
⚠️ If you contributed over 5 years or have over ¥250K, the lump-sum option is unavailable. You must continue as an "investment instructor" until age 60.
Frequently Asked Questions (FAQ)
I haven't paid my National Pension premiums. Is iDeCo impossible for me?
Unfortunately, you cannot enroll. You must first pay off the unpaid amount, or have an exemption application approved, before you can join iDeCo. Note that you also cannot enroll while an exemption is in effect.
What happens to iDeCo assets left in Japan after I return to my home country?
The standard approach is to continue managing the funds as an 'investment instructor' until age 60. Upon reaching 60, the funds are transferred to a Japanese bank account. If you meet the conditions for the lump-sum withdrawal payment, you may also choose to receive that instead.
Can a stay-at-home spouse start iDeCo?
Yes. As a Category 3 insured person (dependent on a spouse), you can contribute up to 23,000 yen per month. However, the income deduction benefit is weak (since your own income is low), so the purpose becomes tax-free investment growth rather than tax savings.
I'm enrolled in a corporate DC plan. Can I use iDeCo alongside it?
In principle, yes, but if your corporate DC plan's rules include the 'matching contribution' option, you cannot combine it with iDeCo. Check with your company's HR department. If combining is allowed, the monthly cap is 20,000 yen.
Does SBI Securities' iDeCo offer English support?
The dedicated iDeCo call center is Japanese-only, and the documents are in Japanese too. However, since SBI Securities has an English-language phone support line for its services overall, you can get guidance through that. Monex and Rakuten are similar.
What if I want to switch securities companies partway through?
It's possible but takes some effort. You go through a 'transfer' (ikan) procedure: apply at the new securities company first, and your assets are then transferred from the old one. It takes about 1-2 months, during which your investments are paused. There is no fee.
Which should I prioritize, iDeCo or NISA?
If you plan to stay in Japan for 5+ years and earn 4 million yen or more annually, prioritize iDeCo (bigger tax-saving effect). If you need liquidity or your return date is uncertain, prioritize NISA. Maxing out both is ideal, but it depends on your monthly disposable funds.
Compare NISA before starting iDeCo
If you might leave Japan, NISA offers more liquidity. Compare both before deciding.
See NISA guide for foreigners