News Meiji Yasuda Life Insurance extends retirement age to 70

[thomas]

Meiji Yasuda Life Insurance Company plans to extend its compulsory retirement age from 65 to 70, starting in fiscal 2027. This change would make it the highest retirement age among major Japanese financial institutions. Approximately 10,000 employees at the Tokyo-based life insurer, excluding sales personnel, will become eligible under the new system. The company is currently in discussions with its labour union regarding this plan. The decision aligns with the government's efforts to address the labour shortage by increasing the number of elderly workers due to Japan's declining population. Meiji Yasuda extended its retirement age to 65 from 60 in 2019.

In April 2021, Japan enforced a law to encourage companies to allow their employees to work until they are 70 if they wish to. Under the plan, Meiji Yasuda's employees aged 65 or above will be able to choose to work for shorter hours a day or three days a week, while the same salary could be offered after reaching 65 depending on their duties. At many Japanese companies, the retirement age is often set at 60. But most companies rehire their employees until 65 typically with wages significantly lower than before the retirement age.

Meiji Yasuda Life to extend retirement age to 70 amid labor shortage - The Mainichi

TOKYO (Kyodo) -- Meiji Yasuda Life Insurance Co. plans to extend its compulsory retirement age to 70 from the current 65 from fiscal 2027, making it t

mainichi.jp

Meiji Yasuda Life Insurance to extend retirement age to 70 | NHK WORLD-JAPAN News

NHK has learned that one of Japan's biggest life insurance companies plans to raise its retirement age to hold onto workers, a growing challenge for businesses in the country.

www3.nhk.or.jp

 

[mdchachi]

That means people who were about to retire in 2019 may end up working an extra 10 years unexpectedly.

 

[salyavin]

I don't think so, I think it is allowing them to work more years if they want. I need to read about their pension. It is mandatory retirement age, is there something stopping them from retiring earlier? The company pension is what would decide weather it is voluntary or not. the national pension is still 65. I think it is they can still work if they want to. In the US we do not have a mandatory retirement age except for a very few professions like pilot for example but not for an office worker. Many Japanese companies require you to retire at a certain age which used to be 60 for many. Didn't matter that you still wanted to work. You then end up waving glow wands to make money.

 

[dracuella]

Here in Denmark you're paid a government pension when you retire, meaning the government decides at which age you're supposed to retire at the earliest. Recently, this system has seen som 'upgrades' where how long you have to work before being able to receive your pension now depends on the year you're born (retirement age used to be 67 for everyone):

Retirement age	Year of birth
67	1955 -1963
68	1963 -1967
69	1967 -1971
70*	1971 -1975
71*	1975 -1979
72*	1979 -1983
72,5*	1983 -1987
73*	1987 -1992
73,5*	1992 - 1996
74*	1996 - now

The ones marked with an asterix have not been decided yet but are on the government agenda next year. Being born in '74, I'd be able to retire at age 70 - no bloody way I'm working another 21 years, absolutely not! I'll just live off less and leave (a lot) earlier!

 

[salyavin]

The national pension for Japan is 65, however many companies also have a pension in Japan I would think a bank would have one. My understanding is this is about mandatory retirement age where in Japan they FORCED you to retire weather you wanted to or not. The elderly then often get part time jobs. I am a bit older than you. I am one of the few Americans with a pension from an old employer but I also get social security and I have other investments. Social Security is 67 for right now in the US but I get more if I wait until 70. They allow me to take it early at 62 for a significant reduction. I might push to 70 for social security but I will probably mostly retire at 60-62 due to investments, company pension and having housing taken care of (and my wife demands it as she wants to go back to Japan lol). I know not everyone does investments like for example IDECO in Japan or NISA but one should for one's own sake. If you plan to leave also think about taxes. A US ROTH IRA for example has tax free withdrawls in the US but is taxable in Japan. taxes get fun. What is iDeCo?｜ IDeCo official site｜ iDeCo, a step you can take now to secure your future after retirement ｜ National Pension Fund Association
NISA Accounts in Japan: A Beginner's Guide I recommend you please save for your retirement if at all possible and not depend 100% on goverment pension.
Being 50 this year one needs to get a plan and put it into action as 20 years can pass faster than one expects.

 

[Grandpa Frank]

I retired at 62 due to my bad back and overweight patients. Boy do they really hit you for "early" retirement. After 12 years , my payoff is just now over $1000 a month. It would have been over $2000 a month if I'd waited till 65.

 

[salyavin]

Yea these days they raised full retirement from 65 to 67 so one has to wait even longer to not get that penalty which is still very large. Social security payments up to a point are based on your highest 35 earning years as well so the payments are different for everyone. For doing such compassionate work it is sad you had to take a hit to your retirement. People don't much of it but we all get older and many of us may find ourselves in need of such valuable help even if we do not think so now.

 

[dracuella]

(and my wife demands it as she wants to go back to Japan lol)

Happy wife,happy life? I agree, though, if you can afford it, why spend another 8-10 years working when you could spend it with family and friends? Could you do your work from abroad or do you have to be on-site?

I recommend you please save for your retirement if at all possible

I've been investing surplus earnings for some time now and am seeing it pay off slowly but surely. I do have a bit of savings but most of it I'm investing in investment funds through my bank which has a pretty good return around 13-15%. They even did well during lockdown and the war in Ukraine. I'm prepping hard so I can stop working early.

After 12 years , my payoff is just now over $1000 a month. It would have been over $2000 a month if I'd waited till 65.

Damn, Frank, that's an insane dip! And just three years?? That's so unfair. As @Saiyavin said, for someone doing what you do, something most of us end up needing, it feels especially wrong. Is there no redemption for those who have to leave because of health and such? No one wants to spend their old age with a worn out back.

 

[Mikawa Ossan]

Happy wife,happy life? I agree, though, if you can afford it, why spend another 8-10 years working when you could spend it with family and friends? Could you do your work from abroad or do you have to be on-site?


I've been investing surplus earnings for some time now and am seeing it pay off slowly but surely. I do have a bit of savings but most of it I'm investing in investment funds through my bank which has a pretty good return around 13-15%. They even did well during lockdown and the war in Ukraine. I'm prepping hard so I can stop working early.


Damn, Frank, that's an insane dip! And just three years?? That's so unfair. As @Saiyavin said, for someone doing what you do, something most of us end up needing, it feels especially wrong. Is there no redemption for those who have to leave because of health and such? No one wants to spend their old age with a worn out back.

13-15% annualized? Over the life of your investments? That's pretty good if you can do that consistently. Do you know what the funds are invested in?

 

[salyavin]

Happy wife,happy life? I agree, though, if you can afford it, why spend another 8-10 years working when you could spend it with family and friends? Could you do your work from abroad or do you have to be on-site?

Yes indeed happy wife happy life it really makes a big difference I cannot quite afford it yet for the lifestyle I'd like getting close we are in the last stretch. I also cannot touch certain retirement accounts until 59.5, I am 53. If I quit and moved to Japan now I'd have to work and would earn much less leading to less investments. The whole reason I am in the US is because of my wife's request actually. I had to come for my job and she liked the status of the income so she wanted us to go to continue the career. My work has allowed me to work in Japan for a month or 2 or so now and then but then I must come back here. They would not allow me to say take a spouse visa and just keep working there, even though they have a presence it of course changes benefits and taxes. I am near my father these days who is 80 I am not alone here. After retirement I still may end up doing some part time job somewhere depending on returns on investments depending on kids school fees and college.

Very happy to hear you are investing sounds like you are doing it right.

 

[dracuella]

13-15% annualized? Over the life of your investments? That's pretty good if you can do that consistently. Do you know what the funds are invested in?

I know my investments dipped around 14% during the onset of the war in Ukraine but on average it's been good. One year saw a 30%+ rise (I think it was around the time Ozempic by Novo Nordisk took off). The funds are largely Danish and quite numerous - my investment advisor shifts things around as he sees fit - but some of the recent ones are Jyske Invest PM Danske Aktier, Storebrand Global Solutions, and BankInvest Højt Udbytte Aktier (sorry for the Danish titles, this was the last investment report I received >_>).

Risk-wise, I'm mid to high risk at the moment (40% mid, 60% high) but knowing I want to retire around 60, he's planned for me to switch to mid or low/mid in the next 5ish years. I have a lot of faith in his investment acumen and I hope he never quits. Fortunately, he's younger than I so with any luck I get to retire before he does xD

 

[salyavin]

I am glad you are also on track for retiring around 60 or so!

 

[dracuella]

I just wish I'd started earlier rather than sit on my savings for so long. I've never really spent a lot of money on anything except my PC (and my endless list of games) so I would have been able to start at least 10 years earlier than I did. I just didn't realise how worthwhile it was.

After retirement I still may end up doing some part time job somewhere depending on returns on investments

What kind of part-time would you consider doing? Running a dagashiya out in the countryside? Or is that just my ideal retirement occupation xD

 

[salyavin]

Depends on what is available at that time. I might help in the family ryokan for example or even part time eikaiwa. In the town there is already a eikaiwa teacher in his 60s. My wife would do some part time work as well she said she is 9 years younger than me mainly it is about helping kids finish their education.