Gaijin Retirement in Japan

[ArmandV]

Social Security Retirement Ages

This will take you to the Social Security Website. Look for your year of birth and get your Full Retirement Age info.

http://www.ssa.gov/retire2/agereduction.htm

 

[ET_Fukuoka]

Quality-teachers are always in demand regardless of their age. Besides, if all else fails and you still need an "in", I can do the visa cert for you through my business. Just some paperwork on my part-no biggie, although you would have to arrange to come here in person at least once to hammer out the details. You can then do with it as you wish. At least it's an option should all else fail. Looks like i've cast my lot here in Fukuoka after purchasing my first home so i'll be around for awhile to watch my investment grow...

Which part of Fukuoka did you buy your house? My wife's family lives in the sticks outside of Fukuoka and we were thinking about getting a 3ldk there since they are so cheap.

 

[ArmandV]

4 Years Later...

It's been nearly four years since the last post on this thread. Since then, there's been a few "life changes" for me.

I got laid off in November 2007 and I really haven't found a job comparable to what I had.

That said, on the income side, my mom passed away in January 2010 and left me with 80 acres of farm property. I get income from the corn crop (I have a tenant farmer).

I figure that Social Security and the farm income would sustain me where ever I may end up. (My 401k and IRA were eaten up by the financial meltdown of 2008.) That, plus whatever I come up with for extra income (and for something to do), should suffice.

I still have Japan in mind for retirement. Although, since this thread started, Malaysia seems to be more inviting.

Opinions?

 

[klausdorth]

Well, seems we are all thinking about our retirement, once the "R-day" is approaching.
As for me, I still got at least another 6 years to go over here in the "land-of-the-not-always-rising-sun". Hoping for another 11 years so I will get retirment pay. Together with the pension from Germany it will be just enough to live, I assume. Thinking and planning, especially with no financial back-up ... what can I say.
Well, looking forwrad to reading more from you in the future,
greetings from Ehime

 

[Chankochan]

Does anyone have good links to real estate sites that sell property in Kyushu ? I'd like to research buying a house there -- Oita or Miyazaki-ken? Also, what kinds of restrictions exist re: bringing dogs into the country?

 

[Jerry Cullins]

Wow, old thread. Always interesting though to see how situations change so quickly.

Personally I want to retire to the Amami islands, even have the wife signed up with this, we almost bought a place last year but someone else snatched it up before we got there (although we did get a nice vacation out of it since we'd already bought the tickets).

One of the "challenges" of finding a place in Japan is that there is no unified MLS system. The location you are interested in will likely have a city website with all the real estate agents listed and from there you have to search individual websites. I think you can find that info on the prefectural website too in most places.

Decent aggregate real estate websites:
不動産情報・賃貸・住宅情報検索サイト 【goo 住宅・不動産】（マンション・一戸建て・土地・店舗）
【Yahoo!不動産】マンション・一戸建ての住宅情報

Personally I like the searchable map function although it would be nicer if you could zoom out further...

 

[garbonzo]

Interesting thread….been quiet for a while. I stumbled on it via google. The last post here was in 2011 - so just wondering about current retirement issues. I'm Australian, lived in Japan for a few years when I was a kid and my father worked in the aviation industry there. I travelled around the country for several months when I was in my twenties….and my wife and I have had a couple vacations there more recently and planning our next one. My wife of over thirty years is originally from the Philippines and of course Australian now. She's a nurse, damn good one….and I work in a university as a technical supervisor for biological sciences…

We're thinking to pull the plug and retire in the next year or two…..we both have outstanding language skills…we've worked around the world. Plan A was to retire in the Philippines….we've got a nice very large lot there in the central islands in a 'secure' compound of mostly western expats and wealthy Filipinos…However I find conditions there are deteriorating rapidly - crime rising dramatically, inflation, population growth out of control, simple things like electricity unreliable, medical care a joke….I've certainly lost interest in retirement in the Philippines and even my wife is far less keen.

Just wondering if Japan is a viable alternative for retirement. We both love it there. I speak a fair bit of Japanese (not claiming any fluency) and my wife can learn it even quicker than me…..speaks several languages. We'd have a retirement income - combined - of around $4000 USD a month….plus enough assets to cover any medical dramas…I expect….and when we are eligible to buy a house in Japan could sell ours in Australia for more than enough to cover a nice house there in a semi-rural area of north Kyushu or Hokkaido . Prices in those areas are a bargain compared to Australia.. We love the country…I always have - and my wife is now well and truly converted.

So is it possible? I'm expecting difficult….but possible would have me going for it….

 

[WonkoTheSane]

Interesting thread….been quiet for a while. I stumbled on it via google. The last post here was in 2011 - so just wondering about current retirement issues. I'm Australian, lived in Japan for a few years when I was a kid and my father worked in the aviation industry there. I travelled around the country for several months when I was in my twenties….and my wife and I have had a couple vacations there more recently and planning our next one. My wife of over thirty years is originally from the Philippines and of course Australian now. She's a nurse, damn good one….and I work in a university as a technical supervisor for biological sciences…

We're thinking to pull the plug and retire in the next year or two…..we both have outstanding language skills…we've worked around the world. Plan A was to retire in the Philippines….we've got a nice very large lot there in the central islands in a 'secure' compound of mostly western expats and wealthy Filipinos…However I find conditions there are deteriorating rapidly - crime rising dramatically, inflation, population growth out of control, simple things like electricity unreliable, medical care a joke….I've certainly lost interest in retirement in the Philippines and even my wife is far less keen.

Just wondering if Japan is a viable alternative for retirement. We both love it there. I speak a fair bit of Japanese (not claiming any fluency) and my wife can learn it even quicker than me…..speaks several languages. We'd have a retirement income - combined - of around $4000 USD a month….plus enough assets to cover any medical dramas…I expect….and when we are eligible to buy a house in Japan could sell ours in Australia for more than enough to cover a nice house there in a semi-rural area of north Kyushu or Hokkaido. Prices in those areas are a bargain compared to Australia.. We love the country…I always have - and my wife is now well and truly converted.

So is it possible? I'm expecting difficult….but possible would have me going for it….

I don't know about up there in mainland, but if it's similar costs to Okinawa you could afford it. It wouldn't be a plush lifestyle but depending on what you like to do and how you like to live it could be comfortable.

As to possible? Go check what visas are available to you.

 

[WayneTN]

It's been nearly four years since the last post on this thread. Since then, there's been a few "life changes" for me.

I got laid off in November 2007 and I really haven't found a job comparable to what I had.

That said, on the income side, my mom passed away in January 2010 and left me with 80 acres of farm property. I get income from the corn crop (I have a tenant farmer).

I figure that Social Security and the farm income would sustain me where ever I may end up. (My 401k and IRA were eaten up by the financial meltdown of 2008.) That, plus whatever I come up with for extra income (and for something to do), should suffice.

I still have Japan in mind for retirement. Although, since this thread started, Malaysia seems to be more inviting.

Opinions?

I found this thread recently and found it interesting and hope that more will attempt add and bump this to keep it current.

By the way, I'm sorry to hear about the lost of you mother the chain of events in your life, however keep in mind that there are times when we run into an obstacle another door of opportunity may open up. My sister was just informed of her office closure but is optimistic that she will be able to utilize her skills to secure another job...we are optimistic!

If it's of any help, I had to restart my life all over again in '86 at 34 years old (now 62; retired couple of years ago) and things worked out rather well. We lost Dad in 1992 and then Mom in 2002. Overall it's tough at times but just not let things become overwhelming and stay focused.

I wish you the best and please keep us posted your efforts. I also hope others will share their wisdom on same.

 

[cocoichi]

Sorry for bringing up this topic after more than a year. It's just that I am new here and I find so many interesting topics!

ArmandV, have you made any concrete plans regarding Japan?

I know of one guy who has kind of "retired" in Japan in the easiest way possible. He comes on a tourist visa to Okinawa and lives in a 1000 yen per night hostel. I am sure he even gets a discount on the monthly fee. He does not mind the noise sometimes, because he has no appointments the next day anyway. He sleeps whenever he feels like it, and enjoys the Okinawa life.

He still has a home in the US that he sometimes goes back to (I think he rents it out most of the time), and comes to Okinawa whenever he likes. Maybe that could be something for you?

 

[sendaiben]

Just found this site, and forum (can't believe I haven't seen it before). I've been living in Sendai for the last 16 years and plan to stay here.

If anyone is interested I run a site called RetireJapan that focuses on personal finance for residents of Japan. I hope it's okay to mention this (and I'm not going to link to it, just in case).

I'm also happy to answer questions here. The TLDR version is: earn more/spend less/save and invest/don't get ripped off by financial 'advisors'/learn about things like NISA and J401k accounts.

 

[Vincent3]

Sendaiben, thank you for that resource. It's the first I've heard of NISA and J401k, and the most optimistic I've been about the possibility of retiring in Japan.

 

[sendaiben]

Sendaiben, thank you for that resource. It's the first I've heard of NISA and J401k, and the most optimistic I've been about the possibility of retiring in Japan.

Hi Vincent

My pleasure! I hope you find it useful. Please let me know if you need any more info on anything -I use questions as a sneaky resource to plan blog posts

 

[DBC Japan]

The retirement system in Japan is not so great, so I saved up and kept money as a retirement fund since I plan to retire at about 50 (early I know, but I have enough saved that I just want to enjoy some free time before I'm decrepit), my wife's parents are retired and their pension is not good, so I am doing the same as them and saving a nest egg. I also have a solar array in a neighbouring town that pays well. and an ECO house so over the year I profit from TEPCO on my electric bills.

 

[sendaiben]

The retirement system in Japan is not so great, so I saved up and kept money as a retirement fund since I plan to retire at about 50 (early I know, but I have enough saved that I just want to enjoy some free time before I'm decrepit), my wife's parents are retired and their pension is not good, so I am doing the same as them and saving a nest egg. I also have a solar array in a neighbouring town that pays well. and an ECO house so over the year I profit from TEPCO on my electric bills.

Interesting. Retiring early is something I am also planning to do. I am looking at 44 for myself, but don't plan to stop working -I'll carry on doing freelance writing and consulting which I enjoy.

Are you happy with what you are doing with your nest egg? Check out RetireJapan.info for information about various investing opportunities in Japan. Alternatively, we'd love to hear about your experiences.

 

[DBC Japan]

Interesting. Retiring early is something I am also planning to do. I am looking at 44 for myself, but don't plan to stop working -I'll carry on doing freelance writing and consulting which I enjoy.

Are you happy with what you are doing with your nest egg? Check out RetireJapan.info for information about various investing opportunities in Japan. Alternatively, we'd love to hear about your experiences.

To be honest, I just don't trust investment options for my retirement money and inheritance. I find letting it collect interest while topping it up with payments from TEPCO for selling energy is more than sufficient.

 

[sendaiben]

To be honest, I just don't trust investment options for my retirement money and inheritance. I find letting it collect interest while topping it up with payments from TEPCO for selling energy is more than sufficient.

Fair enough! The most important thing is that you understand what you are doing and are happy with results. If your current (very safe) strategy is going to meet your needs, you've already won

 

[DBC Japan]

Fair enough! The most important thing is that you understand what you are doing and are happy with results. If your current (very safe) strategy is going to meet your needs, you've already won

So far there is enough for me and my family to not work until I am 130 years old, take away possible problems that cost money like house or solar repairs and the fact I will be dead by 100. It is fairly safe, that excludes the money I earn from selling electricity.

 

[Majestic]

So far there is enough for me and my family to not work until I am 130 years old

It sounds very impressive. From age 50 to 130 years (just using the number as a hypothetical) would be 80 years of retirement. I reckon you would need 2,500,000 yen per year to survive in Japan. More in your active years, maybe less in your infirm years...2,500,000 yen annually shouldn't be too far from reality. Obviously you will need more if you intend to travel or enjoy other things that life has to offer. Anyway, by my calculations you should have nearly 200,000,000 in the bank (earning .01%, or about 20,000 yen per year in interest income). You are to be congratulated on having saved such a nest egg at your age.

 

[mdchachi]

To be honest, I just don't trust investment options for my retirement money and inheritance. I find letting it collect interest while topping it up with payments from TEPCO for selling energy is more than sufficient.

Where are you finding interest rates above 0 in Japan??

 

[Mike Cash]

Where are you finding interest rates above 0 in Japan??

You can go nuts trying to keep this guy's lies straight.

 

[johnnyG]

.... I also have a solar array in a neighbouring town that pays well. and an ECO house so over the year I profit from TEPCO on my electric bills.

I can see how this could make sense. Minimal utility bills on the eco house, plus what would probably be stable and predictable payments from TEPCO for what is generated from the solar.

It depends on some business stuff that I don't know and could only guess at. As with a standard real estate purchase (for rental), there are undoubtedly tax deductions or write-offs for depreciation, maintenance, some other costs, other income levels, etc.

I've seen for-sale condos in the Tokyo area advertised for investors, and claiming a 6-8% return for the owner--you buy, rent, cover expenses, claim deductions, and you supposedly get something like that back. Operating a solar 'farm' could have some advantages over buying some kind of rental unit. Solar probably generates (and TEPCO pays) very predictably, while some rental units could go vacant for a while, you might have tenants-from-hell, unexpected clean-up and refurbishing costs, and lord help you if you have to evict someone. So while I don't know the numbers, solar panels are probably a a pretty problem-free tenant. Especially if you've gotten in on it early (a rate lock), before certain parts of the country got over-saturated with solar. I live in what is considered to be a non-sunny part of the country, and I have seen a surprising number of solar farms here.

Still, I'm only speculating, and I don't know what the costs and return on investment would be for a solar installation. (but it would certainly be simpler/easier to run than starting and running an eikaiwa! if the return were anywhere close, I'd go solar.)

***

Apart from where you might be siting some solar panels (where you'd want to buy cheap), I'd avoid most of Japan. Declining population coupled with the coming economic picture--it would only make sense to buy in kanto/kansai (fukuoka?)--where people are going, not where they are leaving. The olympics will help tokyo, but that's already happening (has happened) so I'd feel like I was behind the curve on that. And who knows how long chinese hot money will last?

***

0% interest?

T: Summary for AT&T Inc.- Yahoo! Finance

PIMCO Dynamic Income Fund: NYSEDI quotes & news - Google Finance

Western Asset Mrtg Defined Oppn Fund Inc: NYSEMO quotes & news - Google Finance

Also, there are two kinds of REITs--mortgage REITs and equity REITs:

NLY: Summary for Annaly Capital Management Inc C- Yahoo! Finance

REZ: Summary for iShares Residential Real Estate- Yahoo! Finance

They pay differently, but you get what you pay for...! The trade-off for high payouts is that there is almost never any underlying appreciation (and sometimes depreciation)--something that might be acceptable in retirement, but not as a 30-40 yr old.

Compare any of those with QQQ. The returns are better, and they come as capital appreciation rather than dividends. So you'd accumulate over your working life, and then sell (and pay taxes!) only when you needed the money.

Blah, blah, blah... Again, read a lot, act very cautiously, look for low cost.

 

[S.K.]

I've seen for-sale condos in the Tokyo area advertised for investors, and claiming a 6-8% return for the owner--you buy, rent, cover expenses, claim deductions, and you supposedly get something like that back.

It's best to steer clear away from places that advertise such high numbers considering that;
1- You can only get such a high rate of return if the property is old and far from a station
2- Older properties that aren't within at least a 10 minute walk of a major station have major difficulties finding tenants (the return basically turns into the negative during those times when you factor in the operating costs and taxes)
3- There are no significant claim deductions on older properties since the government wants people to invest in newer (and thus safer) buildings.

The actual rate on such properties would be a lot closer to 5% or less.

 

[johnnyG]

It's best to steer clear away from places that advertise such high numbers considering that;
1- You can only get such a high rate of return if the property is old and far from a station
2- Older properties that aren't within at least a 10 minute walk of a major station have major difficulties finding tenants (the return basically turns into the negative during those times when you factor in the operating costs and taxes)
3- There are no significant claim deductions on older properties since the government wants people to invest in newer (and thus safer) buildings.

The actual rate on such properties would be a lot closer to 5% or less.

I'd generally agree. Property is illiquid while adding other hassles; ETFs are the way to go (maybe some small bets on a few stocks or some such).

Buy and hold--Altria (MO) is now paying me about 12% on my cost basis.