iDeCo Calculator
Project your iDeCo (Individual-type Defined Contribution pension) balance at retirement. Calculates compound growth against the ¥23,000/month company-DC cap.
Details
Result
iDeCo Balance at 60
¥13,753,793
Total Contributed
¥6,900,000
Tax-Deferred Growth
¥6,853,793
Annual Tax Saved
¥55,200
Tax Saved Over Period
¥1,380,000
Monthly Cap
¥23,000
iDeCo — the tax-optimised retirement wrapper
iDeCo (個人型確定拠出年金, Individual-type Defined Contribution pension) is Japan\'s personal pension scheme. Contributions are 100% income-deductible, gains inside grow tax-deferred, and withdrawals at 60+ use the generous retirement income deduction (taishoku shotoku kōjo) or public pension deduction — giving a three-way tax advantage few other wrappers match.
Contribution caps by employment
Caps vary: self-employed (¥68,000/mo), DC-only employee (¥23,000/mo — our default), corporate-pension-only employee (¥12,000/mo), company-pension-free employee (¥23,000/mo), housewife/non-working spouse (¥23,000/mo). The 2024 reform raised the cap for DC-covered employees from ¥20k → ¥23k. Public servants can now also contribute.
The lock-in is real
iDeCo funds are locked until age 60. No early withdrawal except on death or severe disability. Enrolling after age 50 can push access past 60 due to a 10-year holding requirement. Size your contribution against truly-long-term savings — use NISA for anything you might need before 60.
Best providers (avoid bank accounts)
SBI Securities, Rakuten Securities, Matsui, and Monex charge no monthly operational fee beyond the mandatory ¥171/month to the national pension fund association. Their fund menus include eMAXIS Slim and DC-exclusive low-fee index funds. Avoid bank iDeCo accounts — they often charge ¥300-500/month in admin fees, which compound into a massive drag over 25+ years.
Frequently Asked Questions
Everything you need to know, in one place.
What is the iDeCo contribution cap?
Depends on employment: self-employed ¥68,000/month (¥816k/yr); corporate pension-only employee ¥12,000; DC-only employee ¥23,000 (our default); company-pension-free employee ¥23,000; housewife/spouse ¥23,000. The 2024 reform increased caps for company DC employees from ¥20k → ¥23k.
What tax benefits does iDeCo offer?
Three tiers: (1) Contributions are 100% income-deductible — a 20% bracket taxpayer saves ~¥55,000/yr at ¥23k/month. (2) Gains inside iDeCo are tax-free while invested. (3) Retirement withdrawal uses the retirement income deduction (generous) or public pension deduction. Combined benefit often exceeds 25-30% of contributions.
When can I withdraw iDeCo?
Earliest age 60 — strict. Early withdrawal not permitted except on death or severe disability. If you start iDeCo after age 50, you must wait at least 10 years from enrollment, which may push access past age 60. Account must be held for at least 10 years to withdraw at 60.
Best iDeCo providers in Japan?
SBI Securities, Rakuten Securities, Matsui, and Monex offer free account operation (no monthly fee beyond the mandatory ¥171/month to the national pension fund association). Fund menus include eMAXIS Slim, SBI V, and DC-exclusive low-fee funds. Avoid bank iDeCo accounts — they often charge ¥300+/month in admin fees.
iDeCo vs NISA — which first?
Rule of thumb: iDeCo first for the upfront income tax deduction (risk-free return of your marginal rate), then NISA for liquidity and higher caps. A 30% marginal taxpayer putting ¥23k/month into iDeCo saves ¥82,800/yr in tax — that is the guaranteed return before any market gains.
How are iDeCo withdrawals taxed?
Three options at age 60+: (1) Lump sum — uses "retirement income deduction" (¥400k × years contributed for first 20 years, ¥700k × years thereafter), tax on only half the excess at progressive rates. Very generous. (2) Pension/annuity — uses "public pension deduction" with favourable treatment. (3) Combination. Strategy for high contributors: split withdrawals across 5+ years to use the pension deduction annually, especially if still working part-time. A ¥20M iDeCo balance with 30 years of contributions often withdraws tax-free as a lump sum.
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