Japan Pension Lump-Sum Withdrawal (脱退一時金): Step-by-Step Guide

What is the lump-sum withdrawal? — 脱退一時金とは

The 脱退一時金 (dattai ichijikin) is a lump-sum refund of a portion of your pension contributions when you leave Japan permanently. It exists because Japan's pension system requires a minimum of 10 years of contributions (120 months) to qualify for a regular pension payout at retirement age. Most foreigners leave Japan well before reaching that threshold, so without this refund system, their contributions would be completely lost.

The refund is not a full return of everything you contributed — it is a partial refund calculated based on a formula that considers the number of months you contributed. It also does not include the employer's share of contributions (for 厚生年金 contributors). Think of it as "better than nothing" rather than "getting all your money back."

There are two separate lump-sum withdrawal systems — one for each pension tier:

Eligibility — 受給要件

You qualify for the lump-sum withdrawal if you meet all of the following conditions:

1. You are not a Japanese national — the 脱退一時金 is only available to foreign nationals.
2. You contributed to Japanese pension for 6 months or more — at least 6 months of paid contributions (免除期間 does not count for 国民年金 lump-sum).
3. You do not qualify for a regular pension — you have less than 10 years (120 months) of total contribution history. If you have 10+ years, you may be eligible for a regular pension payout instead.
4. You have left Japan — you must have submitted your 転出届 (moving-out notification) and no longer have a registered address in Japan.
5. You are not receiving any Japanese pension benefit — including disability pension.
6. You apply within 2 years of leaving Japan — the application deadline is 2 years from the date you lost your Japanese address (住所を有しなくなった日).

2025 reform changes — 2025年改正のポイント

The 2025 pension reform (令和7年年金制度改正) made significant improvements to the lump-sum withdrawal system. The most important change:

Maximum refundable period increased from 5 years to 8 years

Previously, the lump-sum withdrawal calculation was capped at 60 months (5 years) of contributions. Even if you contributed for 7 or 8 years, you only got a refund based on 60 months. The 2025 reform raises this cap to 96 months (8 years). This means longer-term foreign residents who contributed for up to 8 years can now receive a proportionally larger refund.

Additional reform changes:

• The contribution rate tables for 国民年金 and 厚生年金 lump-sum calculations are updated to reflect the higher cap
• The reform is phased in — check the effective date for your specific departure timing
• If you contributed for 9 or more years but less than 10, the cap at 96 months still applies (you do not get a full 9-year refund)
• For contributions exceeding 8 years, the excess months are still not refundable unless you qualify for a regular pension (10+ years)

How much you get — 支給額の計算

国民年金 (National Pension) lump-sum:

The 国民年金 lump-sum is calculated by multiplying a fixed monthly amount (基準月額) by the number of contribution months (up to 96). The 基準月額 is determined by the last monthly premium you paid and is updated annually.

Amounts are approximate based on 2025 premium of ¥16,980/month. Actual amounts may vary slightly based on the year your contributions were made and the 基準月額 applicable.

厚生年金 (Employee Pension) lump-sum:

The 厚生年金 lump-sum is more complex because it is based on your actual salary. The formula is:

Lump-sum = Average Standard Monthly Remuneration (平均標準報酬額) × Premium Rate ÷ 2 × Multiplier

The 平均標準報酬額 is the average of your 標準報酬月額 (standard monthly remuneration) across all contribution months. The premium rate is the pension insurance rate for the period (currently 18.3%, divided by 2 because only the employee's share is refundable). The multiplier corresponds to your contribution months (same brackets as 国民年金, capped at 96).

Example: if your average monthly salary was ¥350,000 and you contributed for 36 months (3 years), the calculation is approximately: ¥350,000 × 0.183 ÷ 2 × 36 = ~¥1,153,980 (before 20.42% tax withholding).

Step-by-step application process — 申請手順

You can only apply after you have left Japan and no longer have a registered address. Here is the complete process:

1. Before leaving Japan:
   • Confirm your pension contribution record at your local 年金事務所 (pension office) or via ねんきんネット (nenkin.go.jp/n_net). Print a record of your contributions.
   • Get the application form: 脱退一時金請求書 (国民年金/厚生年金保険). Download from nenkin.go.jp or pick up at the pension office.
   • Open a bank account in your home country (if you do not have one) — the refund is paid by international bank transfer.
   • Consider appointing a 納税管理人 (tax representative) to handle the tax reclaim after you leave (more on this below).
2. Submit your 転出届 (moving-out notification) at your ward office. This officially deregisters your Japanese address and is the trigger that makes you eligible for the lump-sum withdrawal.
3. Leave Japan. Your eligibility begins on the date you lose your Japanese address (not the date you physically depart).
4. Complete the application form from your home country. Fill in:
   • Your personal details (name, date of birth, nationality)
   • Your Japanese pension number (基礎年金番号)
   • Your bank account details for the refund (bank name, branch, SWIFT code, account number)
   • The currency you want to receive the payment in
5. Mail the application and documents to 日本年金機構 (Japan Pension Service):

   〒168-8505 東京都杉並区高井戸西3-5-24
   日本年金機構 本部
   Japan Pension Service, Head Office
   3-5-24 Takaido-nishi, Suginami-ku, Tokyo 168-8505, Japan

6. Wait for processing. Processing typically takes 3-6 months from when they receive your application. During peak periods (April-June, when many departures happen), it can take longer.
7. Receive the payment. The refund is sent by international bank transfer to your designated account. You will also receive a 脱退一時金支給決定通知書 (payment determination notice) by mail.

Required documents — 必要書類

• 脱退一時金請求書 — the application form (separate forms for 国民年金 and 厚生年金 if applicable)
• パスポートのコピー — copy of your passport (identity page showing name, date of birth, nationality, photo)
• 住民票の除票 or 転出届の控え — proof that you have deregistered your Japanese address. Request 住民票の除票 at your ward office before leaving, or use the stamp on your 転出届.
• 年金手帳 or 基礎年金番号通知書 — your pension booklet or notification showing your 基礎年金番号 (basic pension number). If lost, include your number on the form and note that the booklet is unavailable.
• 銀行口座証明 — proof of your overseas bank account (bank statement or bank-issued account confirmation showing account holder name, bank name, branch name, SWIFT/BIC code, and account number)
• 納税管理人届出書 — if you are appointing a tax representative to reclaim the 20.42% withholding tax (optional but recommended)

20.42% tax withholding and how to reclaim it — 源泉徴収と還付

Here is the part that most people do not expect: the lump-sum withdrawal is subject to 20.42% income tax withholding (20% income tax + 0.42% reconstruction tax) at the time of payment. Since you are a non-resident at the time of payment, this tax is withheld automatically by 日本年金機構.

Example: if your 厚生年金 lump-sum is calculated at ¥1,000,000, you will receive ¥795,800 after the ¥204,200 tax withholding.

The good news: you can reclaim most or all of this tax by filing a tax return (確定申告) with the Japanese tax office. But since you are no longer in Japan, you need a 納税管理人 (tax representative) — someone in Japan authorized to handle tax matters on your behalf.

How to reclaim the tax:

1. Appoint a 納税管理人 before leaving Japan. This can be a trusted friend, family member, tax accountant (税理士), or professional service. Submit 所得税・消費税の納税管理人の届出書 to your local tax office before departure.
2. Wait for the payment notice. When 日本年金機構 processes your lump-sum withdrawal, they send a 脱退一時金支給決定通知書 showing the gross amount and tax withheld.
3. Your 納税管理人 files 確定申告 on your behalf. They submit a tax return requesting a refund of the withheld tax. The amount refundable depends on whether the lump-sum was your only income in that tax year (if so, the basic deduction of ¥480,000 applies, which can eliminate or reduce the tax).
4. The tax office processes the refund — typically within 1-2 months of filing. The refund is deposited into the 納税管理人's bank account, who then forwards it to you.

If you did not appoint a 納税管理人 before leaving: you can still appoint one from overseas by submitting the form by mail. You can also file the 確定申告 yourself by mail from abroad, though this is more complicated without someone in Japan to liaise with the tax office. Some tax accountants (税理士) specialize in this service for foreigners who have left Japan — typical fee is ¥30,000-80,000.

Totalization vs lump-sum refund — 社会保障協定 vs 脱退一時金

This is the most important decision you need to make, and many people get it wrong because they do not understand the alternative. Japan has social security totalization agreements (社会保障協定) with 23 countries, including the US, UK, Germany, France, South Korea, Australia, Canada, and others.

Under a totalization agreement, your Japanese pension contribution years can be counted toward your home country's pension eligibility requirement. For example, if the US requires 10 years (40 credits) to qualify for Social Security, and you have 7 years of US contributions plus 5 years of Japanese contributions, the totalization agreement lets you count both — reaching the 10-year minimum and qualifying for a US pension based on your US contributions.

General guidelines:

• Take the lump-sum if you contributed for 1-3 years, your home country does not have a totalization agreement with Japan, or you already have enough contribution years in your home country to qualify for a pension.
• Consider totalization if you contributed for 5+ years, your home country has a totalization agreement, and those extra years would help you qualify for (or increase) your home country's pension.
• Do the math: compare the lump-sum amount (a one-time payment now) with the present value of the additional pension payments you would receive at retirement. In many cases, the pension value over a 20-30 year retirement far exceeds the lump-sum refund.

FAQ — よくある質問