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Last updated: June 21, 2026
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Set up your Wise account to receive your pension refund. Avoid high bank fees and get the real exchange rate when transferring funds to your home country.
"I paid into the Japanese pension system... is that money just gone?"
Many people think this, but the truth is different. Foreigners who worked in Japan can claim back a large portion of their pension contributions as a "Lump-sum Withdrawal Payment" when they leave the country. However, there is a common trap: "If you do nothing extra, you only get 80% back."
The remaining 20% is withheld as "Income Tax," but you can get this back too if you follow the correct procedure (filing a tax return).
For an average company employee (5 years of service, monthly salary of ¥300,000), you could potentially get back a total of about ¥1.65 million. This is significant funding for starting your new life back home.
In this article, we explain the timing, necessary documents, and the specific steps to get back that "remaining 20% tax" that many people give up on.
First, let's visualize how much money you can recover. The amount depends on whether you were enrolled in "Employees' Pension (Kosei Nenkin - Company Employees)" or "National Pension (Kokumin Nenkin - Freelancers/Students)" and your "Coverage Period (up to 60 months)."
For company employees, this applies to the pension deducted from your monthly salary. The calculation is a bit complex, but roughly it is "Average Monthly Salary × Payment Rate."
Let's simulate a case where you worked for 5 years (60 months) with a monthly salary of ¥300,000.
For freelancers and students, the National Pension refund is a "fixed amount" based on the coverage period. Based on the FY2024 standards (from April 2024):
Overseas remittances via major banks have high fees. With Wise, you get the real exchange rate (mid-market rate), meaning you could receive over ¥10,000 more in your local currency. Creating an account is free.
To receive the Lump-sum Withdrawal Payment, you must meet all four of the following conditions:
This is the most critical point. If you do not claim it within 2 years of leaving Japan (losing your domicile), your right to the refund expires.
There are endless horror stories of people thinking "I'll do it once I settle down," only to realize 2 years have passed.
When you receive the Lump-sum Withdrawal Payment, your pension coverage period resets to zero. If you plan to return to Japan in the future and apply for Permanent Residency, having your pension history wiped clean could affect the screening process.
First is the procedure to get back the initial 80%. This is relatively simple and can be done by yourself.
While it is possible to mail it from within Japan before you leave, the application will only be processed after you have submitted your "Moving-out Notification" ([translate
]) and your resident registration is deleted. Therefore, mailing it from overseas immediately after returning home is the standard and safest method.Mail the following 4 items to the "Japan Pension Service."
::ReviewBox{author="Reddit/SNS Voices" rating="4.5" title="Pension Refund Failures" text=""If the bank account name (middle name) differs by even one letter from your passport, the transfer will fail without mercy. Wise is recommended because you can easily match the names." (r/JapanLife)\n\n"I went through the automated gate at the airport and forgot to get a stamp! In that case, you need your boarding pass stub, so absolutely do not throw it away!" (r/JapanTravel)"}
It takes an average of 4 to 6 months from mailing the documents until the money is deposited. Be patient.
This is the main event. When the money from Step 1 is deposited, you will simultaneously receive a postcard called "Notice of Lump-sum Withdrawal Payment Determination" ([translate
]).Do not throw this postcard away!
This is your ticket to getting back the 20.42% tax (e.g., ¥330,000) that was deducted.
The Lump-sum Withdrawal Payment is considered "Retirement Income." Since it is paid to a non-resident, a flat 20.42% income tax is withheld at the source. However, by filing a tax return for this as "Settlement of Retirement Income," you can claim a refund for this overpaid tax.
Since you are no longer in Japan, you cannot go to the tax office yourself to file. You need to appoint a "Tax Representative" to handle the procedure for you.
To ensure you get the full amount back smoothly, make sure to do these three things before leaving Japan.
Besides pension, there are residence tax payments, bank account closures, [SIM Card](/en/sim-wifi/japan-sim-card-comparison-2026) cancellations... the list is endless. Check our 'Complete Leaving Japan Checklist' to avoid panic.
Q: What if I plan to re-enter Japan? A: If there is a possibility you will return to work in Japan within 1-2 years, it might be better not to claim it. Claiming it resets your coverage period, meaning your count for Permanent Residency or old-age pension eligibility (principally 10 years) starts from zero again.
Q: Will my company handle this for me? A: No. The Lump-sum Withdrawal Payment is a completely personal procedure. Your company only handles the loss of social insurance qualification; you must do the refund application yourself.
Q: Can I receive it in my Japanese bank account? A: Possible, but not recommended. You usually need to close your account upon leaving, and even if you keep it, transferring the money overseas later involves high fees and hassle. Designating an overseas account (or Wise) from the start is smoother.
The pension refund is not just a bonus. It is money you earned and accumulated while working hard in Japan.
The procedure is a bit complex and takes time, but abandoning the right to get back ¥300,000 to ¥500,000, or even over ¥1 million, is a huge waste.
Start by finding a "Tax Representative" and creating a Wise account before you leave. Wrap up your life in Japan in the black with this final job.
Designate Wise as your receiving account to avoid high lifting fees and receive funds smoothly in your local currency.
Related money task
This internal guide does not decide individual eligibility; it helps organize document prep and software options.
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A: Yes. If you contributed to Japanese National Pension (kokumin nenkin) or Employees' Pension (kosei nenkin) and leave Japan permanently, you can claim the Lump-Sum Withdrawal Payment (脱退一時金) within 2 years of losing your address in Japan. You apply after leaving Japan.
A: The amount depends on the number of months you contributed and the average standard monthly remuneration. For employees (kosei nenkin): the refund formula is your average monthly remuneration × contribution months × a multiplier (around 2–9% depending on months). A rough estimate: ¥50,000–300,000 for 1–3 years of contribution.
A: The deadline is 2 years after the date you lose your registered address in Japan (i.e., you deregister from the city hall before leaving). Apply as soon as possible after leaving. The Japan Pension Service accepts applications sent from overseas.
A: After leaving Japan: (1) Obtain and complete Form "Withdrawal Lump-sum Application" from the Japan Pension Service website. (2) Get a notarized signature from the Japanese embassy or a local notary. (3) Submit by mail to the Japan Pension Service with supporting documents (pension booklet, passport, foreign bank account details).
A: Yes. 20.42% withholding tax is deducted at source. However, if your country has a tax treaty with Japan (e.g., US, UK, Korea, China, Germany), you may be able to claim a refund of most of this withholding tax by filing a non-resident tax return. Apply with Form "Application for Refund" before leaving or after receiving the payment.
CEO / Native Japanese Expert
Updated on: June 21, 2026
※ The information in this article is accurate as of the time of writing. Laws and regulations may change, so please always check official sources for the latest information. We assume no liability for any damages resulting from the content of this article.
