Should I apply for the pension lump sum when leaving Japan?
Hi everyone, having some doubts about what I should do regarding my Japanese pension, so would like some insight.
I’ve worked in Japan for almost 7 years.
I will be returning to the UK for the foreseeable future (at least a few years, but there is a chance I’ll never come back) at the end of this month.
I’m debating whether I should get a lump sum which will erase the records of the money I’ve paid into the pension system so far, or not take the lump same in case I decide to work in Japan again in the future.
I’m aware that if I were to work 10 years in total I’d be entitled to the national pension once I retire.
Since the UK has a social security agreement with Japan, I think I can also work in the UK for those remaining years and still apply for Japanese national pension down the line.
However, I’m still in my early 30s and the retirement age keeps going up, so maybe I’m looking too far into the future? Not going to lie, that extra cash would be great right now as I prepare for the move, but the exchange rate is absolutely abysmal at the moment, so I’d be losing over half of the money I get anyway..
If anyone has any experience with this I’d love to hear what you did and why.
Thanks!