Should I use iDeCo or NISA?

iDeCo is a pension scheme aimed at building retirement savings, while NISA is a relatively freely withdrawable tax-free investment scheme. Which to choose, or whether to combine both, depends on your goals and the nature of the funds involved. Because this depends on individual circumstances, please consult a qualified tax accountant about what suits you. This is a Japan-specific scheme.

What are iDeCo's contribution limits and tax benefits?

Benefits such as full deduction of contributions from taxable income exist, but eligibility, contribution caps, and the tax details vary by occupation and can change over time. Please confirm the exact rules with the National Pension Fund Association or a qualified tax accountant.

What Is iDeCo (Individual-Type Defined Contribution Pension)?

iDeCo is a private pension scheme in Japan under which individuals contribute and invest their own funds to build retirement assets.

iDeCo is a scheme specific to Japan's pension and tax system. If you are not a Japanese tax resident, it does not apply to you, or a different retirement scheme will apply in your own country.

How it works

With iDeCo, the participant contributes a fixed amount each month and chooses from a set of preapproved investment products, such as mutual funds or fixed-term deposits, to manage the contributions. In principle, funds cannot be withdrawn before age 60.

Difference from NISA

NISA (see related page) can be withdrawn from at any time, whereas iDeCo generally cannot be withdrawn from until age 60, in exchange for tax benefits such as a deduction on contributions. Please confirm the scheme's details and how it fits your situation with a qualified tax accountant.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

Should I use iDeCo or NISA?: iDeCo is a pension scheme aimed at building retirement savings, while NISA is a relatively freely withdrawable tax-free investment scheme. Which to choose, or whether to combine both, depends on your goals and the nature of the funds involved. Because this depends on individual circumstances, please consult a qualified tax accountant about what suits you. This is a Japan-specific scheme.
What are iDeCo's contribution limits and tax benefits?: Benefits such as full deduction of contributions from taxable income exist, but eligibility, contribution caps, and the tax details vary by occupation and can change over time. Please confirm the exact rules with the National Pension Fund Association or a qualified tax accountant.

Related terms

What Is NISA?