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iDeCo is Japan’s individual pension plan, and foreign residents can join it on the same rules as Japanese citizens. Your contributions are fully deductible from your income, so you pay less income tax and resident tax every year. The catch is that you generally can’t take the money out until age 60. Before you join, check whether you may leave Japan, because early withdrawal is allowed only in narrow cases.
Key facts (as of October 2026)
- Who can join: People in a Japanese public pension category, such as company employees and the self-employed. (iDeCo official site)
- Tax benefit: Contributions are fully deductible, gains are tax-free while invested. (iDeCo)
- Higher limits: New limits start with December 2026 contributions. (MHLW)
- Withdrawal: Generally from age 60. Early withdrawal only if you meet strict conditions. (iDeCo FAQ)
- Risk: Investment trusts in iDeCo are not principal-guaranteed.
What is iDeCo?
iDeCo (individual-type defined contribution pension) is a pension you build yourself. You choose how much to contribute each month and what to invest in. The money grows until you receive it, generally from age 60. (iDeCo)
It sits on top of the public pension you already pay through your job or the national pension. It doesn’t replace it.
iDeCo sits on top of your public pension
It adds a third floor. It doesn’t replace what you already pay.
Floor 3
iDeCo (and company DC plans)
Optional. You choose the amount and the investments. Contributions are tax-deductible.
Floor 2
Employees’ Pension (kosei nenkin)
Company employees and civil servants. Paid through your salary.
Floor 1
National Pension (kokumin nenkin)
Everyone living in Japan aged 20 to 59, including foreign residents.
Source: iDeCo official site (National Pension Fund Association). As of October 2026.
Can foreigners join iDeCo?
Yes. Eligibility depends on your pension category, not your nationality. These are the main categories. (iDeCo)
| Category | Who | Can join? |
|---|---|---|
| Category 1 | Self-employed people, freelancers, and students aged 20 to 59 in the national pension | Yes, unless exempt from premiums |
| Category 2 | Company employees and public servants in the employees’ pension | Yes, with some exceptions |
| Category 3 | Dependent spouses of Category 2 members, aged 20 to 59 | Yes |
| Category 4 | Voluntary national pension members, such as people aged 60 to 64 | Yes |
Who can’t join
- People exempt from national pension premiums, including partial exemptions. People receiving a disability basic pension are an exception. (iDeCo)
- Some employees in company DC plans, such as those who make matching contributions. (iDeCo)
- Non-Japanese people living abroad. Only Japanese nationals living abroad can join as voluntary members. (iDeCo FAQ)
The last point matters for foreign residents. Once you move abroad, you can’t keep contributing.
A new category from December 2026
A new Category 5 starts on December 1, 2026. It covers people aged 60 to 69 who are no longer national pension members, under certain conditions. (MHLW)
How much can you contribute?
Limits depend on your category. They rise with contributions for December 2026, which are debited in January 2027. (MHLW, MHLW)
| Category | Until November 2026 | From December 2026 |
|---|---|---|
| Category 1 (self-employed) | ¥68,000 a month | ¥75,000 a month |
| Category 2, no company pension | ¥23,000 a month | ¥62,000 a month |
| Category 2, with a company pension | ¥20,000 a month, within a combined cap | ¥62,000 minus your employer’s contributions |
| Category 3 (dependent spouse) | ¥23,000 a month | ¥23,000 a month |
| Category 4 (voluntary members) | ¥68,000 a month | ¥75,000 a month |
| Category 5 (new, aged 60 to 69) | None | ¥62,000 a month, in principle |
For Categories 1 and 4, the limit is shared with the National Pension Fund and additional premiums. (MHLW)
Other rules to know:
- Minimum: ¥5,000 a month, in ¥1,000 steps. (iDeCo)
- Changing the amount: Once a year. You can stop contributing at any time. (iDeCo)
- One-time exception: Your first raise above the old limit, made between December 1, 2026, and November 30, 2027, doesn’t count as your yearly change. (iDeCo)
How much tax does iDeCo save?
All your contributions are deducted from your income. The iDeCo official site gives an example. Contributing ¥10,000 a month, with 10% income tax and 10% resident tax, saves about ¥24,000 a year. (iDeCo)
The higher your tax rate, the more each yen of deduction saves. That makes iDeCo more valuable for higher earners.
Gains are reinvested without the usual 20.315% tax. When you receive the money, deductions apply. Pension payments get the public pension deduction, and a lump sum gets the retirement income deduction. (iDeCo)
iDeCo also lowers your furusato nozei limit a little, because your limit depends on your resident tax. Recalculate it after you join. See Furusato Nozei Limit.
When can you take the money out?
Generally from age 60, and you can start receiving it any time up to 75. (iDeCo)
To start at 60, you need at least 10 years of membership before 60. With less, your earliest start age moves later. (iDeCo)
You can receive it as a lump sum, as a pension over 5 to 20 years, or a mix. The options depend on your provider. (iDeCo)
What happens to your iDeCo if you leave Japan?
You stop contributing, and your money generally stays invested until 60. Early withdrawal is possible only if all of these apply. (iDeCo FAQ)
- You are under 60.
- You are not in a company-type DC plan.
- You can’t join iDeCo anymore. Non-Japanese people living abroad are one example.
- You are not a Japanese national living abroad aged 20 to 59.
- Your total contribution period is 5 years or less, or your assets are ¥250,000 or less.
- You are not entitled to a disability benefit.
- It has been 2 years or less since you last lost iDeCo or company DC membership.
The contribution period counts only months you actually contributed. (iDeCo)
To claim, you first file a membership loss form through your provider, then request the lump-sum withdrawal payment. (iDeCo FAQ)
What this means for you: If you may leave Japan after more than 5 years of contributions, your money may stay locked until 60. For flexible savings, NISA is often a better first step. See iDeCo vs NISA.
What does iDeCo cost?
You pay fees to the National Pension Fund Association, plus fees set by your provider and its partner bank. (iDeCo FAQ)
| Fee to the association | Amount (tax included) |
|---|---|
| When you join or transfer assets | ¥2,829 (first time only) |
| Each contribution | ¥105 |
| When a contribution is refunded | ¥1,048 |
These fees are deducted from your contributions. Provider fees vary, so compare them before you choose. (iDeCo FAQ)
Can you use iDeCo in English?
Not easily. We could not find an iDeCo provider that offers English online applications. Interactive Brokers Securities Japan offers English service and NISA, but we found no iDeCo on its official site. (Our research, October 2026)
SBI Securities has an iDeCo application page for overseas addresses with English return-address text. That doesn’t mean English support is available. (SBI Securities)
How do you join, step by step?
- Check your category. Your employment type decides it. Employees should also check whether their company has a DC plan.
- Choose a provider. Providers are banks and brokers registered for iDeCo. Compare fees and fund choices.
- Apply through the provider. Since December 2024, company employees no longer need an employer’s certificate. The exception is if your contributions are deducted from your salary by your employer. (SBI Securities)
- Choose your contribution and investments.
- Contributions start. They are debited from your bank account each month or on your chosen schedule.
What should you do next?
- Decide whether you’re likely to stay in Japan until 60.
- If yes, check your category and compare providers.
- If you’re unsure, start with NISA. See NISA for Foreigners in Japan.
FAQ
Can I join iDeCo on a work visa?
Yes, if you’re in a Japanese public pension category, such as an employee in the employees’ pension. Eligibility is based on your pension category. (iDeCo)
Can I keep contributing after I leave Japan?
No, not as a non-Japanese national. Only Japanese nationals living abroad can join as voluntary members. (iDeCo FAQ)
Can I get my iDeCo money back when I leave?
Only if you meet all the lump-sum withdrawal conditions. One key condition is a contribution period of 5 years or less, or assets of ¥250,000 or less. (iDeCo FAQ)
What is the iDeCo limit for company employees from December 2026?
¥62,000 a month. If your company has a pension plan, your employer’s contributions are subtracted. (MHLW)
Can I lose money in iDeCo?
Yes. Investment trusts are not principal-guaranteed. Check the product list and risks at your provider before you choose.
Is the pension refund for foreigners the same as iDeCo?
No. The pension refund (lump-sum withdrawal payment) is for the public pension. See Japan Pension Refund.
This article is general information, not investment or tax advice. Investment trusts are not principal-guaranteed. Information is as of October 2026. Sources: iDeCo official site, iDeCo FAQ, MHLW: iDeCo limit changes.