How Much Savings Are Needed to Retire in Japan? Can Foreigners Enjoy Retirement Life in Japan?

Relocating to JapanRetirement PlanningLife in JapanForeign ResidentsSavings GoalsInternational Retirement
Created At: 8/11/2025Updated At: 8/18/2025
Answer (1)

Hey friend! Seeing your question, I bet you're also dreaming of a leisurely retirement life in Japan, right? Like sipping tea in a Kyoto machiya or strolling along the Okinawan beaches. It's a beautiful dream, but making it real requires solid planning.

As someone who's also done quite a bit of homework on this topic, let me share my understanding to help you clarify this dream.

Core Question 1: How much "dough" do you need in your pocket to retire in Japan?

This is absolutely everyone's top concern. The answer is actually simple: It depends on the lifestyle you want.

You might have heard about Japan's much-discussed "20 Million Yen Problem". This refers to the idea that a retired couple, even with their pension (年金 nenkin), might need an additional 20 million yen (approx. 1 million RMB) in savings to comfortably cover 20-30 years of retirement.

But this is just an average. Let's break it down into more specific lifestyle models so you can better see where you fit.

Typical Retirement Budget Scenarios (Monthly, Single Person Example)

1. The Frugal & Secure Life

This lifestyle is typically found outside major metropolitan areas like Tokyo or Osaka, such as in smaller cities in Kyushu, Shikoku, or the Tohoku region. Living costs are significantly lower.

  • Rent/Mortgage: 50,000 - 70,000 JPY (can get a nice single apartment)
  • Utilities (Electricity, Gas, Water, Internet): 15,000 - 20,000 JPY
  • Groceries/Food: 40,000 - 50,000 JPY (mostly home cooking)
  • National Health Insurance/Taxes: 20,000 - 30,000 JPY (varies by income & region)
  • Transportation/Communication: 10,000 JPY
  • Miscellaneous/Entertainment: 20,000 - 30,000 JPY (occasional eating out, park visits)
  • Total: Approx. 150,000 - 210,000 JPY per month

Savings Target Estimate: If you have absolutely no other income (e.g., pension), assuming retirement at 65 and living to 90 (25 years), you would need: 180,000 JPY/month × 12 months × 25 years = 54,000,000 JPY (approx. 2.7 million RMB)

2. The Comfortable & Worry-Free Life

This lifestyle is possible in suburbs of major cities or popular livable cities (like Fukuoka, Sapporo). Higher quality of life, with more entertainment and social activities.

  • Rent/Mortgage: 80,000 - 120,000 JPY (more spacious or better-located apartment)
  • Utilities: 20,000 - 25,000 JPY
  • Groceries/Food: 60,000 - 80,000 JPY (can eat out often, buy higher-quality ingredients)
  • National Health Insurance/Taxes: 30,000 - 50,000 JPY
  • Transportation/Communication: 15,000 JPY
  • Miscellaneous/Entertainment/Travel: 50,000 - 80,000 JPY (1-2 domestic trips per year, hobbies)
  • Total: Approx. 250,000 - 370,000 JPY per month

Savings Target Estimate: Similarly calculated over 25 years: 300,000 JPY/month × 12 months × 25 years = 90,000,000 JPY (approx. 4.5 million RMB)

3. The Luxurious Life

Living in central Tokyo, enjoying top-tier healthcare, dining, and cultural life.

  • Rent/Mortgage: 150,000 JPY and up
  • All other expenses: Increase accordingly, easily exceeding 500,000 JPY per month total.
  • Savings Target Estimate: 150,000,000 JPY and above, with no upper limit.

Summary: For most foreigners aiming for a decent retirement life, savings of 50 to 90 million JPY (approx. 2.5 - 4.5 million RMB) is a relatively reliable target range. Of course, if you've worked in Japan for many years and qualify for a Japanese pension (nenkin), or if you have a pension from your home country, the required savings can be reduced accordingly.

Core Question 2: Can foreigners actually retire in Japan?

The answer is: Yes, but there are prerequisites, and it's not like Thailand or Malaysia with a dedicated "retirement visa".

The key is "status," meaning your Residence Status (Visa). This is like your "entry ticket" to the map of retirement life in Japan. Without it, no matter how much money you have, you can only be a short-term tourist.

Main Pathways to Get the "Entry Ticket":

  1. Permanent Resident (永住者 Eijūsha)

    • This is the ideal "entry ticket". With it, you enjoy almost the same rights as Japanese citizens (except voting rights), no longer worry about visa renewals, and can live and work (or not work) freely in Japan.
    • How to get it? Typically requires continuous residence in Japan for 10 years or more, with at least 5 years holding a work or residence visa. Also requires good conduct, stable income/assets, timely tax payments, and no criminal record. For "Highly Skilled Professionals," this period can be shortened to 3 years or even 1 year.

  2. Spouse of a Japanese National/Permanent Resident

    • If you marry a Japanese citizen or permanent resident, you can apply for a "Spouse of Japanese National" or "Spouse of Permanent Resident" visa. This is one of the most direct routes.

  3. Long-term Resident (定住者 Teijūsha)

    • This visa type is more specific, usually granted to people of Japanese descent or those with special humanitarian reasons to stay in Japan.

  4. Business Manager Visa (経営管理ビザ Keiei Kanri Visa)

    • If you have sufficient capital (typically 5 million JPY or more as startup capital), you can establish a small company in Japan and obtain a visa as the company manager. After retirement, you could hire someone to run the company while you "step back." However, this requires maintaining the company's operations and meeting renewal requirements, which can be relatively troublesome.

Important Reminder: Japan currently does not have a specific "retirement visa." You cannot apply to come to Japan just to retire simply because you have enough money. You must first obtain a long-term, stable residence status through one of the pathways above. "Secure your status first, then talk about retirement" is the fundamental logic.

Other Realistic Issues You Must Consider:

  • Health Insurance: As long as you have residence status, you must enroll in Japan's National Health Insurance (NHI). The benefit is that you only pay 30% of medical costs when you see a doctor (20% for ages 70-74, 10% for 75+), with the government insurance covering the bulk. This is a huge safety net for seniors. But the monthly insurance premiums are also a fixed expense.
  • Language Barrier: While you can get by with English in big cities, Japanese language ability is essential to truly integrate into the community, understand bills and notices, chat pleasantly with neighbors, and accurately describe symptoms to doctors. It directly impacts the quality and convenience of your retirement life.
  • Cultural Adaptation: Japanese society has unique rules and customs, such as strict garbage sorting rules and neighborhood interaction styles. These take time to learn and adapt to.

To Summarize

  • Money is the Foundation: Aiming for savings of 50 million JPY or more will give you more confidence.
  • Status is the Gateway: You must first obtain Permanent Residency or another long-term, stable residence status. There are no shortcuts.
  • Plan Early: Whether it's saving money or planning to obtain status, this is a long-term project spanning years or even over a decade.

Retiring in Japan is not an easily achievable goal, but it's certainly not a pipe dream. It requires combining your romantic vision with cool-headed planning.

Plan ahead, take it step by step, and that leisurely afternoon sipping tea under the cherry blossoms might truly be waiting for you not too far away. Good luck!

Created At: 08-11 14:36:06Updated At: 08-12 03:21:59