Defined contribution pension plans have been revised so that they can provide a better economic foundation for the long-term elderly and so that more companies and individuals, including small and medium-sized companies, can take advantage of the plans.
The revisions that will take effect in FY2022 are as follows.

◆The upper age limit for the start of receiving benefits has been extended to 75
From April 2022, you will be able to choose when you would like to start receiving old-age benefits for your company-type DC and iDeCo (individual-type Defined Contribution pension plan) between the ages of 60 (after losing your eligibility) and 75. You can choose when to start receiving the old-age benefit.

◆Expanding the Age for Enrollment in Corporate-type DC
Currently, people under the age of 65 are eligible to join the corporate DC, but from May 2022, the age will be expanded to include people under the age of 70. However, the age at which you can join differs depending on the company.

◆Expanding the Age for Joining iDeCo
Currently, people insured under the public pension system who are under 60 years old are eligible to join iDeCo, but this will be expanded to under 65 years old from May 2022.

◆Enforcement in October – Making it easier for corporate DC participants to join iDeCo
For those who are currently enrolled in a company-type DC to join iDeCo, an agreement between labor and management of each company is required, but in principle they will be able to join from October 2022.
However, the employer’s contribution to the corporate DC, the contribution to the iDeCo, and the total amount of these contributions must each be as follows. In addition, you cannot join an iDeCo if you are making matching contributions to the corporate DC.

If you are a member of a company-type DC and want to join an iDeCo
1) Employer’s premiums for corporate DC : JPY 55,000 or less
2) iDeCo premiums : JPY 20,000 or less
1) + 2) : within JPY 55,000

If you are a member of a corporate DC or a defined benefit plan (DB, employee pension fund, etc.) and want to join an iDeCo
1) Employer’s premium for corporate DC : within JPY 27,500
2) iDeCo premiums : JPY 12,000 or less
1) + 2) : within JPY 27,500