Money

Retirement Savings Calculator

Enter your current age, retirement age, savings, expected return, monthly expenses, and pension to calculate how much you need to save each month to reach your retirement goal.

Current Age
yrs
Retirement Age
yrs
Plan Until Age
yrs
Current Savings
JPY
Expected Return (Annual)
%
Monthly Expenses in Retirement
JPY
Monthly Pension Income
JPY
Required Monthly Savings
[[ fmt(result.requiredMonthlySavings) ]] JPY
Retirement Nest Egg Needed
[[ fmt(result.targetNestEgg) ]] JPY
Asset Longevity
[[ result.assetDepletionAge ]] years old Will not run out within the planned period
Monthly Shortfall
[[ fmt(result.monthlyShortfall) ]] JPY

Results are simulations only. Actual returns, pension amounts, and tax treatment will differ. Consult a financial professional for personal retirement planning.

Tips

  • This calculator assumes a constant annual return compounded monthly. Since actual investment returns vary, using a conservative rate (2–3%) is recommended for planning purposes.
  • Your public pension estimate can be found on your annual pension statement (Nenkin Teiki-bin) or via the Nenkin Net portal. If planning for a couple, enter the combined total.
  • Setting the "Plan Until Age" higher than the average life expectancy (87 for women, 81 for men in Japan) is standard practice to manage longevity risk. 90 years is a common benchmark.
  • Tax-advantaged accounts like NISA (Nippon Individual Savings Account) and iDeCo can significantly boost your retirement savings by sheltering investment gains from taxes.
  • A common guideline is that retirement expenses run at 70–80% of pre-retirement income, as housing and commuting costs often decrease while travel and healthcare costs may rise.

Frequently Asked Questions

Both iDeCo and NISA let you invest tax-free, but they work differently. iDeCo contributions are fully deductible from income tax, but funds are locked until age 60. NISA allows withdrawals at any time. A common approach is to use NISA first for flexibility, then add iDeCo if you have surplus income.

According to surveys by Japan's Ministry of Health, Labour and Welfare, the average lump-sum retirement benefit for university graduates retiring at standard age is roughly ¥18–20 million (2020s), but this varies greatly by company size and industry. Many small and medium enterprises offer significantly less. It's worth confirming your expected amount with your HR department rather than assuming a fixed amount.

Long-term expected returns are roughly 0.1–0.2% for time deposits, 2–4% for balanced mutual funds, and 4–6% for equity-focused portfolios. For retirement planning, using a conservative 2–3% is safer — if actual returns are higher, that becomes a buffer rather than an assumption.

The full national pension (kokumin nenkin / kiso nenkin) was approximately ¥66,000/month in FY2024. For a couple, that's about ¥132,000 — well below typical monthly expenses of ¥200,000–250,000. Self-directed savings become even more critical in this scenario, and maximizing iDeCo and NISA contributions is strongly recommended.

The calculator shows pre-tax estimates. In practice, investment gains outside NISA/iDeCo are taxed at approximately 20% (15% income tax + 5% resident tax). Pension income benefits from a public pension deduction (公的年金等控除). For personalized tax planning, consult a tax accountant or financial advisor.
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Side Note — The "¥20 Million Shortfall" Debate

In 2019, a report from Japan's Financial Services Agency estimated that a retired couple would need an additional ¥20 million beyond their public pension over 30 years. The estimate assumed a monthly shortfall of ¥55,000 and sparked a national debate about the sustainability of the pension system. While the exact figure depends on individual circumstances, the underlying point — that public pensions alone may not be enough — resonates widely.

Retirement income in Japan traditionally relies on three pillars: public pension (nenkin), company retirement benefits (taishokukin), and personal savings. As lifetime employment becomes less common and corporate retirement packages shrink, self-directed savings have become increasingly important. Starting in your 20s or 30s gives compound interest decades to work in your favor.

The "4% rule," popularized in the United States, suggests that withdrawing 4% of your portfolio annually allows it to last 30 years. For a ¥20 million portfolio, that's ¥800,000 per year (about ¥67,000/month). This rule is based on U.S. historical data; in Japan's low-interest environment, many financial planners use a more conservative 3–3.5% withdrawal rate instead.

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