Understanding When to Start Receiving Pension Payments in Japan

In Japan, the decision of when to start receiving pension payments is crucial as it can significantly affect the total amount received throughout one's lifetime. According to a recent survey conducted by Yuichi Sugawara, a certified tax accountant and operator of the popular YouTube channel '脱・税理士スガワラくん' (Datu Tax Accountant Sugawara), insights into the age at which individuals begin to receive their pensions and their reasoning behind this choice have been revealed.

Survey Overview

The survey was carried out on January 15, 2026, targeting men and women aged 55 to 79 across Japan. A total of 500 participants responded to questions about their current pension status and the age they opted to start their payments. The sample included individuals split into age categories to ensure balanced representation.

Key Findings

From the survey results, it was found that approximately 60% of respondents were already receiving their pensions. Interestingly, about 10% of individuals who qualified had chosen not to initiate their payments. This indicates a portion of the population is delaying or reconsidering when to start receiving their pensions.

The most common age to begin receiving pensions was 65, which aligns with government regulations. However, around 30% of participants began receiving their pensions earlier, in their early 60s. On the contrary, only 15.4% opted for delayed payments past the age of 65.

When asked about the reasoning behind their chosen age to start receiving pensions, nearly half of the respondents (47.4%) cited health and life expectancy as significant factors. Other reasons included the immediate need for cash for living expenses (26.2%) and tax considerations (24.0%). Alarmingly, about 10% mentioned a lack of understanding of the pension system, underscoring the need for better education on this subject.

Impact of Timing on Pension Amounts

The age at which individuals begin to receive their pension payments can dramatically influence the total amount received over their lifetime. Typically, public pensions commence at the age of 65 with two main types beneficial to different groups: the National Pension (for everyone who has paid into the system) and the Employee Pension (for those who have worked as employees or in civil service roles).

Significantly, starting to receive pensions before the age of 65 can lead to reduced monthly payments, with calculations showing a decrease of 0.4% for every month prior to 65. For example, someone receiving 1 million yen annually at 65 would see their payments drop to 760,000 yen if they started at 60. The break-even point between starting early or late in terms of total pension amount typically occurs around the age of 81.

Conversely, individuals could increase their pension payments by delaying until the age of 70, resulting in a 42% increase. However, as with earlier payments, individuals must consider their potential longevity when making such decisions.

Additional Strategies for Pension Receivers

Moreover, it is essential to consider other income sources when determining the best age to receive pensions. If individuals continue to earn a salary post-retirement or have other income, they might see a reduction in their total pensions. Thus, for those still working, delaying the age of pension receipt can often be the most practical choice.

Additionally, for workers who leave their jobs at 60, there's the option to file for unemployment benefits, which are non-taxable. They can choose to receive these benefits first and delay pension receipt to maximize their financial situation in the interim.

Conclusion

Ultimately, there is no definitive correct age to start receiving pension payments in Japan; rather, the decision must align with individual circumstances and life goals. Factors such as likelihood of living past 81-82, reliance on pension as the primary income source, and active income generation post-retirement are all pivotal aspects to consider.

Engaging in thoughtful planning tailored to personal life circumstances can lead to better financial outcomes in retirement. The key takeaway is that seeking prompt pension receipt might be the best approach for many.

About Yuichi Sugawara

Born in Mie Prefecture in 1975, Yuichi Sugawara specializes in tax reduction and financial management. He has achieved notable success through his YouTube channel, gathering over 1.45 million subscribers and ranking first in the national tax accountant blog listings. He has also published several best-selling books on financial techniques and frequently conducts seminars for a variety of organizations, including major firms and online platforms.