iDeCo (personal pension)

A private pension you fund yourself, with tax breaks

In detail

iDeCo is a private pension in Japan that you pay into and invest yourself. Contributions are deducted from taxable income in full, and gains inside the account are untaxed. In exchange the money is locked until roughly age 60, so it suits only savings you can set aside from living costs. The contribution ceiling depends on how you are employed.

Example

Paying in ¥20,000 a month removes ¥240,000 a year from taxable income.

Related terms

NISA Compounding Investment fund Tax deferral

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For learning, not investment advice. Decisions are your own.