A Guide for Returnees from Japan to Make the Most of the nenkin Refund Service (Lump-sum Withdrawal Payment)

For those who are returning to their home country from Japan after working there, understanding how to maximize your lump-sum withdrawal payment is of paramount importance. Whether you’re retiring, transitioning careers, or heading back home for other reasons, the decisions you make regarding your pension or retirement savings can have a profound impact on your financial future. This blog is tailored to assist you in optimizing your lump-sum withdrawal payment, with a special focus on making the most out of your “nenkin refund.”

Unveiling the Significance of Nenkin Refund in Your Return

The “nenkin refund” holds great significance for individuals leaving Japan after their work stint. It refers to the process of receiving a refund from your pension contributions in Japan. This refund presents a valuable opportunity to bolster your financial resources as you embark on a new chapter back in your home country. To ensure you gain the utmost advantage from this process, follow these strategic steps:

1. Grasp the Eligibility Criteria

Before delving into the details of your nenkin refund, it’s crucial to understand the eligibility criteria. Factors such as your age, length of contributions, and the type of pension plan you are under can influence your eligibility. Seeking guidance from pension experts or financial advisors will help you navigate this aspect effectively.

2. Align with Your Financial Goals

Consider your immediate and long-term financial objectives. Are you planning to utilize the nenkin refund for resettlement costs, investments, or debt clearance? Having a clear vision of your financial aims will guide your decisions and enable you to allocate the refund astutely.

3. Navigate Tax Implications

Acquiring a thorough understanding of the tax implications related to your nenkin refund is essential. Depending on the treatment of the refund, it could be subject to taxation. Collaborating with a tax professional will ensure you make informed choices, preventing any unforeseen tax liabilities.

4. Seek Expert Counsel

The intricacies of retirement planning, nenkin refunds, and financial decision-making can be overwhelming. Engaging the assistance of financial advisors or retirement planning experts can offer tailored guidance that suits your individual circumstances.


Maximizing your lump-sum withdrawal payment, especially when considering a nenkin refund upon your return from Japan, necessitates careful deliberation and planning. By grasping the eligibility criteria, defining clear financial objectives, managing taxes, making astute investments, and seeking professional counsel, you can harness the full potential of this financial opportunity. Remember, the choices you make today will significantly shape your financial journey in the years to come, as you embark on your new adventure back in your home country.

Hirano International Labor Office handles procedures for Lump-sum Withdrawal Payments upon return to Japan.

We have heard many customers say that it is difficult for them to proceed with the procedures for lump-sum withdrawal payments on their own, so please consult with us about even the simplest matters.

Contact us for a consultation.