iDeCo Revised system for retirement wealth building: December 29, 4:50

In order to build assets in retirement, the revision plan for “individual-type defined contribution pensions =“ iDeCo ”to be added to public pensions has been solidified.

“IDeCo” is one of the private pensions that individuals can voluntarily join in addition to the public pension. The contributions and operating profits are exempt from taxation, but the number of users is only about 1.44 million.

The Ministry of Health, Labor and Welfare has drafted a plan to revise the system to encourage the use of it for asset formation in retirement.

This will extend the maximum enrollment period for those under the age of 60 to under 65, and will extend the range of starting age options from 60 to 70 to 75.

In addition, we will make online applications and other procedures.

On the other hand, the requirements will be relaxed so that employees who are participating in the “corporate-type” defined contribution pension can join “iDeCo” without the agreement of labor and management if they wish.

And when used in conjunction with the "corporate type", the upper limit of the premium is 55,000 yen per month, of which "iDeCo" can be freely combined up to 20,000 yen per month.

The Ministry of Health, Labor and Welfare plans to submit related bills to the ordinary Diet in the new year.