The Pension '170,000 Yen Monthly Line': It's Not Too Late Even in Your 50s! A Thorough Explanation of 5 Breakthrough Strategies
When you reach your 50s or 60s and start thinking concretely about your life in retirement, the obstacle that stands before many people is the '170,000 yen monthly line' of pension.
'It's impossible for me,' 'There's nothing I can do at this point.'
Have you given up like that?
Admittedly, this line is by no means low. However, no matter how high the line may seem right now, even starting in your 50s, there are still powerful strategies left to cross that line or to see the same view as the 'other side of the line'.
I will thoroughly explain why the '170,000 yen' figure is important, the realistic height of that line, and most importantly, the '5 breakthrough strategies that are not too late even from your 50s', incorporating detailed data and concrete action plans.
1. Why is '170,000 yen' important? Its basis and reality
First, why is the figure of '170,000 yen' talked about as the borderline that separates peace of mind in retirement?
The basis for '170,000 yen' = Securing '145,000 yen' in take-home pay
The basis for this figure lies in the Ministry of Internal Affairs and Communications' Family Income and Expenditure Survey (2023 average).
✅ Average consumption expenditures (food, housing, utilities, medical expenses, etc.) for single, unemployed households aged 65 and older are 145,430 yen per month.
However, what must not be forgotten is the fact that because pension is also 'income,' taxes (income tax/resident tax) and social insurance premiums (national health insurance premiums/nursing care insurance premiums) are deducted at the source.
To keep '145,000 yen' on hand, the calculation is that you need an amount that adds back the deducted portion, which is a pension of approximately 170,000 yen per month in 'gross' terms.
In other words, the 170,000 yen line is not for living in luxury, but is a figure that can be called a 'lifeline' for living an average level of life in retirement.
The harsh reality of the '170,000 yen line'
So, just how many people are actually above this line? Looking at the latest data from the Ministry of Health, Labour and Welfare (FY2022), a harsh reality emerges.
Among Employees' Pension recipients, only 35.2% of the total receive 170,000 yen or more per month.
This is the amount including the National Pension portion, but it does not include people who only receive the National Pension (Basic Pension). Looking at all elderly people, including those receiving only the National Pension (average 56,000 yen per month), the percentage of people exceeding 170,000 yen drops even further, with data showing it is about 17% (less than 1 in 6 people).
Even more serious is the gender gap. Among Employees' Pension recipients, while about 50% of men (1 in 2) exceed the 170,000 yen line, only about 5% of women (1 in 20) do. This is because income and work styles during one's active years (such as periods of non-regular employment) have a significant impact.
You first need to firmly accept this harsh reality.
2. It's not too late even in your 50s! 5 breakthrough strategies for the '170,000 yen line'
"So, is it all over for me?" No, this is where the real work begins. Even starting in your 50s, here are five concrete and powerful strategies to overcome this line or at least see the same view as those on the "other side of the line."
[Strategy 1] Lower the line itself (Optimizing expenses)
If your pension won't reach 170,000 yen, the most reliable first step is to lower the line itself (reduce expenses) so that you can live an average life even without 170,000 yen.
Reviewing your "fixed costs" is particularly effective.
Communication costs
Just by switching from a major carrier to a low-cost SIM, you can save over 5,000 yen per month, or 60,000 yen per year.Insurance premiums
Once you reach your 50s and 60s, the coverage you truly need changes. You can optimize your premiums by canceling or reducing unnecessary death benefits and focusing on medical or long-term care coverage.Subscriptions
Organize your monthly paid services such as video streaming, magazines, and apps that you rarely use.
[Strategy 2] Extend your income period (Designing how you work)
Instead of stopping abruptly at 65, make a plan to continue working within a reasonable range until 70 or beyond. This is a very powerful strategy.
Effect 1
You will have more breathing room in your life because you will earn "salary income" in addition to your pension.Effect 2
The longer you work, the longer you will continue to pay Employees' Pension Insurance premiums, which means the amount of pension you receive in the future will increase.Effect 3
By working, you also create the option to delay receiving your pension (the "deferred receipt" mentioned later).
If you are worried that you "don't have any skills at this point," take advantage of the government-supported "reskilling" (re-learning) system.
💡Education and Training Benefit
If you take a course designated by the Minister of Health, Labour and Welfare, you will be reimbursed for 20% (up to 100,000 yen) to 70% (up to 1.68 million yen) of the costs. There are various courses available, including nursing care, IT, and language learning.
[Strategy 3] Create another pension (Asset management)
It is never too late to start building a "personal pension" through asset management, even in your 50s. In particular, you should definitely take advantage of "NISA (Tax-free investment quota)" and "iDeCo (Individual-type Defined Contribution Pension)", which offer significant tax benefits.
In principle, you can only contribute to iDeCo until age 60, but there is no age limit for NISA. Even with monthly savings of a few tens of thousands of yen, you can grow assets that won't lose to inflation over the long term, such as 10 or 15 years.
📈Building a "personal pension" using NISA (Image) When saving 30,000 yen per month between the ages of 55 and 75 at an annual interest rate of 5%
[Strategy 4] Thoroughly utilize available systems (Deferral/Additional pension)
Master the powerful weapons within the pension system that "only those who know about them benefit from."
① Deferred Pension Receipt (Up to 84% Increase)
This is a system that increases your pension amount by delaying receipt from age 65.
✅ It increases by 0.7% for every month you delay. It is increased.
If you defer until age 70 (5 years), it increases by 42% (0.7% × 60 months).
If you defer until age 75 (10 years), it increases by 84% (0.7% × 120 months).
For example, a pension of 150,000 yen per month at age 65 (which doesn't reach 170,000 yen) would become approximately 213,000 yen per month if deferred until age 70, and approximately 276,000 yen per month if deferred until age 75, allowing you to significantly break through the line. If you can work longer using 'Strategy 2', this 'deferral' becomes a realistic option.
② Additional Pension (For Self-Employed/Freelancers)
This is a very advantageous system limited to self-employed individuals and freelancers (Category 1 insured persons) who are only enrolled in the National Pension (Basic Pension).
Simply add 400 yen per month to your National Pension premium. In the future, 200 yen × number of months paid will be added to your annual pension amount. It is calculated that you can break even in just 2 years. (Example: If you pay for 2 years (cost of 9,600 yen), you will receive 4,800 yen annually for life.)
This is a classic example of a system that only benefits those who know about it.
【Strategy 5】 The Ultimate Strategy: Invest in 'Health'
The fifth and final strategy is what could be called the ultimate strategy: 'investing in health'.
Health management starting in your 50s can be called the 'best investment' with higher returns than any financial product. This is because health has two major benefits.
Increase Income
If you are healthy, as explained in 'Strategy 2', you can continue working longer and extend your income period.Reduce Expenses
High medical and nursing care costs are the biggest expenditure risks that hit retirement household budgets. Maintaining health is directly linked to suppressing this biggest risk (= maximum expenditure reduction).
Moderate exercise, a balanced diet, and quality sleep. Investing in these will be the strongest foundation for overcoming the 170,000 yen line.
The True Goal is 'Peace of Mind', Not a 'Dollar Amount'
So far, I have talked about 5 strategies to break through the 170,000 yen line.
Finally, I will tell you the most important thing. This figure of '170,000 yen' is merely one 'benchmark' derived from the social average.
Even if you don't reach 170,000 yen,
Keep expenses down to 120,000 yen per month (Strategy 1)
Work until age 70 to earn 50,000 yen per month (Strategy 2)
Build your own pension with NISA (Strategy 3)
Delay pension receipt to increase the payout amount (Strategy 4)
Maintain your health to keep medical expenses down (Strategy 5)
In this way, if you create a plan tailored to your own life and take steady action, there is absolutely no need to be swayed by the numbers on the line.
The true goal is not the amount of money, but achieving a 'sense of security' where you are free from financial anxiety and can live with peace of mind.
Why not take a small first step starting today?
Check your own realistic projected pension amount (your current position) on 'Nenkin Net'.
Visualize your monthly expenses (the living standard you should aim for) using a household account book app or similar tool.
Even just these two things should make your 'current position' and 'living standard to aim for' clearly visible. From there, let's build your own unique breakthrough strategy.
📺 You can also watch the content of this article on YouTube.
Disclaimer: This article is for informational purposes only and does not recommend any specific financial products or investment strategies. We do not guarantee the accuracy of the content or data presented. Please make final decisions regarding investment and asset formation based on your own judgment and responsibility, and consult with a professional if necessary.