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This is an English translation. The Japanese version and Japan Pension Service materials are authoritative.

Japan Pension Early/Deferred Claim Simulator: Break-Even After Tax

Japan lets you start your pension between 60 and 75: −0.4% a month for early, +0.7% a month for deferral. Official tools show gross figures only. Because the extra pension is taxed and raises social insurance, the after-tax break-even is years later.

Calculated on your device only. Figures are estimates.

Why the gross break-even is not enough

You often see "deferring to 70 breaks even at 81 years 11 months". That is a gross calculation.

An 84% larger pension is taxed as it grows, and social insurance rises with income. The after-tax break-even is typically two to three years later.

This is where decisions go wrong. You defer believing 81 is the line, when after tax it is really 84. The simulator shows both.

Two traps before deferring

  1. The dependant addition stops: with a younger spouse you lose about 400,000 yen a year while deferring the employees' pension.
  2. Early claiming is irreversible: the reduced amount is locked in for life.

FAQ

What are the adjustment rates?

For those born on or after 2 April 1962, claiming early cuts 0.4% per month (24% at age 60) and deferring adds 0.7% per month (84% at age 75).

What is the gross break-even age?

Compared with starting at 65, deferring to 70 breaks even at 81 years 11 months and to 75 at 86 years 11 months. Claiming at 60 loses out if you live past 80 years 10 months.

How much later is the after-tax break-even?

Usually two to three years, and more if you have other income. Run your own numbers above.

Do I get the dependant addition while deferring?

No. It is not paid while you defer the employees’ pension, so with a younger spouse most people defer only the basic pension.

Can I undo an early claim?

No. The reduced amount continues for life and you lose access to the disability pension.

Sources

General information only. Confirm your projection with a pension office.