Fuka nenkin (付加年金) is a small top-up to the state pension available to individuals enrolled in Kokumin Nenkin. Contributions are ¥400 per month, and benefits are ¥200 per month (per month of contributions). This equates to annual contributions of ¥4,800, and each year of contributions will increase the state pension by ¥2,400.
Although the contributions and benefits are small, the raw annuity rate is 50%, which is extremely high. For comparison, the annuity rate of kokumin nenkin is roughly 10% (contributions are approximately ¥200,000 per year and benefits are approximately ¥20,000 per year).
- Kokumin nenkin subscribers can apply for fuka nenkin contributions at their local pension office.
- Contributions are tax deductible, and small discounts are available if paying multiple months of contributions in one go.
- Subscribers cannot contribute simultaneously to fuka nenkin and kokumin kikin nenkin.
- Also, contributions will reduce the iDeCo allowance by a small amount (for many fuka nenkin subscribers, this will effectively mean monthly iDeCo contributions will be capped at ¥67,000 per month).