Japan Pension Refund When You Leave (脱退一時金): A Guide for Foreigners

Quick Answer: If you're a foreign national leaving Japan, the Lump-sum Withdrawal Payment (脱退一時金, dattai ichijikin) lets you claim back part of your pension contributions. You qualify with at least 6 months of contributions; the refund is based on up to 5 years (60 months) of payments — roughly ¥525,000 for 60 months of National Pension, and often more on the Employees' Pension. You must apply within 2 years of leaving, and a ~20.42% tax is withheld on the Employees' Pension portion that you can largely reclaim by appointing a tax representative. One catch: claiming can forfeit pension credit you might otherwise keep under a social-security agreement.

If you've paid into Japan's pension system and you're leaving the country, you don't necessarily walk away from all of it. The Lump-sum Withdrawal Payment lets departing foreigners recover part of what they contributed — yet many people leave without claiming it, or claim it without reclaiming the tax that was withheld.

This guide covers who qualifies, how much you can get, the tax you can get back, the one catch worth thinking about, and the step-by-step process.

This is educational information, not tax or pension advice. Rules depend on your situation and your home country's agreements with Japan — confirm details with the Japan Pension Service or a qualified professional.

What is the Lump-sum Withdrawal Payment (脱退一時金)?

When you work in Japan, you contribute to a public pension — either the National Pension (国民年金) if self-employed or not enrolled through an employer, or the Employees' Pension (厚生年金) through a company. Normally those contributions go toward a pension you'd collect from your mid-60s.

If you leave Japan before qualifying for that pension, the Lump-sum Withdrawal Payment lets you recover a portion of what you paid in. It's a one-time payment, calculated from your contribution period and (for the Employees' Pension) your salary.

Who can claim it?

You can generally claim if you:

The deadline is strict: you must apply within 2 years of leaving Japan (losing your residence registration).

How much can you get back?

The refund is based on your contribution months, capped at 60 months (5 years) — this cap was raised from 36 months in April 2021. If you contributed for longer than five years, only 60 months count toward the lump sum.

Because of the 60-month cap, the longer you stay past five years, the more pension value you leave behind by taking the lump sum — which is part of why this is a decision, not a no-brainer (more on that below).

The 20% tax — and how to get most of it back

Here's the part people miss. The Employees' Pension lump sum has about 20.42% income tax withheld at source, so you initially receive only ~80%.

You can reclaim most of that:

  1. Before (or around when) you leave, appoint a tax representative (納税管理人, nōzei kanrinin) — any trusted person resident in Japan with a bank account; no qualification needed. They submit a simple notification to the tax office for your last address in Japan.
  2. After you receive the lump sum and its "Notice of Entitlement," your representative files a tax return on your behalf, which recalculates the tax using resident rates and the retirement income deduction.
  3. The refund is paid to your representative's Japanese bank account, and they forward it to you.

In many cases the bulk of the 20.42% comes back — but only if you set up the representative and file. Skip it, and that money stays with the tax office.

The catch most people miss: totalization agreements

Before claiming, check whether your home country has a social-security totalization agreement with Japan (many do — the US, UK, Germany, and others). Under these agreements, your Japanese contribution period can sometimes count toward your home-country pension — see our full guide to Japan's social security agreements and how to claim a pension across borders.

If you take the Lump-sum Withdrawal Payment, you generally give up that period — so a relatively small refund now could cost you more in pension credit later. For a short stay it's usually worth claiming; for a longer one, or if you may return to Japan, weigh it carefully. This is the same "stay or leave" calculation that runs through iDeCo and NISA decisions for foreigners.

How to claim it, step by step

  1. Before you leave: appoint a tax representative (for the Employees' Pension tax reclaim) and file your moving-out notification at your municipal office.
  2. Gather your documents: pension handbook/number, passport copy, proof you've left Japan, and your bank details (a bank that accepts international transfers, with name matching your passport).
  3. Submit the application to the Japan Pension Service — by mail from abroad is fine — within 2 years of leaving. Processing typically takes 3–6 months.
  4. Receive the lump sum (~80% of the Employees' Pension portion after withholding).
  5. Reclaim the tax: your representative files the tax return with the Notice of Entitlement attached, and the withheld tax is largely refunded.

How this fits your bigger plan

Your pension is one of several Japan-specific pieces that behave differently when you leave — locked iDeCo, a NISA you generally must close, and this refund you have to actively claim. If a move abroad is on the horizon, plan all of them together, well before you go. For the cross-border picture, see expat FIRE and two-country retirement planning.

Before you decide, it is worth seeing what the record you would be cashing in actually pays if you keep it — the free Japan pension calculator works it out from your months of coverage. See how it all fits your timeline with the free PlanTogetherFI calculator.

PlanTogetherFI is for educational planning only. It is not financial, tax, legal, or investment advice. Pension and tax rules depend on your circumstances and your home country's agreements with Japan — confirm with the Japan Pension Service or a qualified professional.

Frequently Asked Questions

Who is eligible for the Japan pension refund?

Foreign nationals who contributed to the National Pension or Employees' Pension for at least six months, have left Japan and cancelled their residence registration, and don't qualify to receive a Japanese pension. You must apply within two years of leaving.

How much money can I get back?

The refund is capped at 60 months (5 years) of contributions. National Pension is roughly ¥525,300 for a full 60 months; the Employees' Pension is salary-based and can be higher. Contributions beyond five years don't increase the lump sum.

Why is 20% deducted, and can I get it back?

The Employees' Pension lump sum has about 20.42% income tax withheld at source. You can reclaim most of it by appointing a tax representative in Japan who files a tax return on your behalf after you receive the payment — without that step, the withheld tax is not refunded.

What's the deadline to claim?

You must apply within two years of leaving Japan (losing your residence registration). The separate tax-refund claim is filed afterward through your tax representative.

Should I always take the refund?

Not necessarily. If your home country has a social-security totalization agreement with Japan, your Japanese contribution period may count toward your home pension — and claiming the lump sum generally forfeits that period. For short stays it's usually worth it; for longer ones, weigh the refund against the pension credit you'd lose.

Sources and further reading

Figures reflect 2025–2026 rates and may change. Confirm your own eligibility, amount, and your country's agreement status before applying.