iDeCo Guide
iDeCo Complete Guide for Foreigners【2026 · Eligibility · Leaving Japan · vs NISA】
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📢 iDeCo reform on 1 December 2026
- Under the 2025 pension reform law (Act No. 74 of 2025), iDeCo's contribution limits and eligible age are scheduled to change on 1 December 2026. Contributions for December 2026 (debited in January 2027) are the first affected.
- Higher contribution caps: employees with no company pension: up to ¥62,000/month. If you have a company pension (for example corporate DC or DB, including public servants), ¥62,000 is the combined ceiling for iDeCo plus the company plan, so your iDeCo limit is the remainder. For the self-employed: up to ¥75,000/month (combined with the National Pension Fund and similar). *Currently it is ¥23,000/month for employees without a company pension.
- Eligible age: a new "Category 5" lets people aged 60 to 69 who are no longer National Pension insured keep using iDeCo if they already hold an iDeCo account (as a contributor or an investment-instruction-only holder) or are transferring assets from a company pension, and meet other conditions. Check your provider for details.
- 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) leaflet (Japanese) ↗; iDeCo official site ↗
💡 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 exempted or deferred, you cannot join iDeCo, and you cannot contribute for any month in which premiums are unpaid, so check your pension enrollment and payment status first.
- In principle, funds cannot be withdrawn before age 60, but if you return to your home country and become a non-resident, you can choose to continue as a person giving investment instructions, or, if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.
- A lump-sum withdrawal payment has several conditions, including either a total contribution period of 5 years or less or assets of 250,000 yen or less (it is unavailable only if both are exceeded), and you may want 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 funds are generally locked until at least age 60 (later if you have contributed for under 10 years). iDeCo contributions are deductible from taxable income, which NISA does not offer; how much tax this saves depends on your income.
Foreigner Eligibility
iDeCo requires enrollment in Japan's public pension — stricter than NISA:
- Age 20 to 64 (the exact upper age depends on your pension category)
- Enrolled in National Pension or Employees' Pension (company employees automatic)
- Japanese address (registered residency)
- Identity documents accepted by your provider
- Not currently exempted from National Pension premiums (students under exemption cannot join)
- No unpaid National Pension premiums (you cannot contribute for any month with unpaid 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: ¥23,000/month is ¥276,000/year. The tax saved is roughly ¥276,000 × (your income-tax rate + 10% resident-tax rate): about ¥55,000 at a combined 20%, or about ¥83,000 at a combined 30% (taxable income of ¥3.3 million or more). The actual amount depends on your taxable income.
- Accumulation stage: Investment gains are tax-free (normally taxed at 20.315%)
- Withdrawal stage: Tax breaks at retirement (retirement income deduction or pension deduction)
Returns are not guaranteed and you can lose part of your principal depending on the products you choose.
Contribution Limits by Job
- Self-employed / Freelance: ¥68,000/month, combined with any National Pension Fund or additional-premium payments (¥75,000 from 1 December 2026, scheduled)
- Employee without corporate pension: ¥23,000/month (¥62,000 from 1 December 2026, scheduled)
- Employee with corporate DC: up to ¥20,000/month, and iDeCo plus your employer's DC contributions must stay within ¥55,000/month (¥62,000 from 1 December 2026, scheduled)
- Public servant / employee with a DB-type pension: up to ¥20,000/month (raised from ¥12,000 on 1 December 2024), provided iDeCo plus the employer/DB-equivalent amount stays within ¥55,000/month
- Homemaker (3rd insured): ¥23,000/month
iDeCo vs NISA — Which to Choose
- iDeCo may suit you if you expect to stay in Japan long-term and want a tax deduction
- NISA may suit you if you are unsure when you'll leave, need liquidity, or have a limited monthly surplus
- Both: many people use both; decide based on your own situation and consult a professional if unsure
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 an application form from your provider (or apply online if available) and submit it with ID documents. Since December 2024 the employer's certificate of company-pension status is no longer required
- Submit → typically 1 to 2 months or more until the first contribution is debited
Examples of providers (no ranking implied): SBI Securities, Rakuten Securities, Monex Securities. Compare product lineup, services and fees, and check each provider's conditions before applying.
Fees: a one-time fee of ¥2,829 (National Pension Fund Association) when you join, plus a fee while you contribute (¥105 per contribution now; ¥120 from the debit on 26 January 2027). Providers' own fees and fund management fees vary — compare before choosing. Fee change notice (Japanese) ↗
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 Stay on as an "investment instructor": you stop contributing (your provider handles the status change) and keep managing the assets until you claim benefits, generally from age 60 (up to age 65 if your total participation period is under 10 years)
- ② Request a lump-sum withdrawal: you must meet all of these conditions: under age 60; not a corporate-DC member; unable to join iDeCo (for example, a non-Japanese national living outside Japan); no disability benefit entitlement; contributions for 5 years or less (months without contributions are not counted) OR assets of ¥250,000 or less; and within 2 years of last losing contributor status. Your provider will explain the steps
⚠️ If you have contributed for more than 5 years AND your assets exceed ¥250,000, the lump-sum option is not available. In that case you would generally remain an investment instructor until you can claim benefits (from age 60 at the earliest).
Frequently Asked Questions (FAQ)
I haven't paid my National Pension premiums. Is iDeCo impossible for me?
Exemption or deferral of National Pension premiums makes you ineligible. Unpaid months are also a problem: you cannot contribute for a month in which premiums are unpaid (that month's contribution is refunded). Check your payment record with the Japan Pension Service before applying.
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 you claim benefits. Benefits are not paid automatically: when you become eligible (generally from age 60; later if your participation period is under 10 years) you must apply to the record-keeping institution, and you need to claim by age 75. 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 many cases, yes. You can combine them if your employer's contributions and your iDeCo contributions are both made monthly and you are not using the matching-contribution option. Your iDeCo limit is up to 20,000 yen per month, and iDeCo plus the employer's contribution must stay within 55,000 yen per month (62,000 yen from 1 December 2026, scheduled). Check with your company's HR department.
Does SBI Securities' iDeCo offer English support?
The application documents and the iDeCo helpline are in Japanese. Please ask each provider (SBI Securities, Rakuten Securities, Monex Securities) whether English support is available before applying.
What if I want to switch securities companies partway through?
You can change providers by applying at the new provider first, using a provider change notification. It usually takes about 2 to 3 months after you submit the documents, and some providers may charge a fee.
Which should I prioritize, iDeCo or NISA?
iDeCo may suit you if you expect to stay in Japan long-term and want a tax deduction on your contributions; NISA may suit you if you need liquidity or your return date is uncertain. Many people use both, depending on their monthly disposable funds. Decide based on your own situation and consult a professional if unsure.
Compare NISA before starting iDeCo
If you might leave Japan, NISA offers more liquidity. Compare both before deciding.
See NISA guide for foreigners