A very difficult subject to a foreign national resident in Japan is to make a suitable life plan for his/her family. Among the many difficulties is the lack of knowledge about costs associated with daily life. It is important to know about the costs we will spend in the various stages of life so that we can prevent and plan ahead.

Marriage – A new life

When a conjugal life begins there are expenses to rent a property (contracts, insurance, etc.), furniture, relocation, etc. The average expenditure is 970,000 yen, and the initial average expenditure for a childless couple is 200,000 yen. These are average costs that may change according to the lifestyle.

* Table 1 – Payments required when entering into a lease:

Expenditure	Value	Description
Deposit	0 – 3 months’ rent	If the rent is outstanding or the place is left damaged after the renter moves out, the money will be used to cover the costs and whatever left will be refunded to the renter.
Key money	0 – 2 months’ rent	It is paid to the landlord as key money. This money is not refunded.
Realtor’s fee	0,5 – 1 months’ rent	This is the commission paid to the real state agent.
Rent	1 – 2 months’ rent
Fire insurance	20 – 30 thousand yen	Renewed every 2 years
Fee to change the keys	10 – 30 thousand yen	Depending on the type of the key

As we can see in the table, there are many expenses when we rent a property in the real estate. There are fees and insurances that will demand a great value when the contract is signed. There is the option of public housing, but it may not always be available after you get married. You need to be prepared for these expenses.

Children and School Education

The next step for a couple is to raise their children. If we calculate the costs from the early school years through college, a significant value will be spent. But if we start saving money in advance, we will be prepared for these expenses.

* Table 2 – School costs (Data from the Ministry of Education, 2010, rounded figures)

School	Public	Private
Kindergarten (3 years)	700,000円	1,610,000円
Elementary School (6 years)	1,820,000円	8,790,000円
Middle School (3 years)	1,380,000円	3,840,000円
High School (3 years)	1,180,000円	2,770,000円
College (4 years)	2,430,000円	4,460,000円
Total	7,510,000円	21,470,000円

School costs until completion of college are high. And, there are other expenses like tuition fees, registration fees in PTA, school supplies, travel, etc. Other costs may vary depending on the family: clothes, mobile phones, games, etc.

For those who has difficulties in paying for the school costs, there are specific funding for education. Look for information in your school or in Mie-ken Kyouiku Iinkai.

Retirement – Expenses during old age

As we age, we begin to spend on medicines, hospitals and special care. Therefore, it is necessary to plan savings for old age.

In old age, the main source of income is the retirement pension. Retirement is a social system which allows the elderly to live in peace. In Japan it is generally possible to receive retirement pension after 25 years of contribution and after completing 65 years of age, and the pension is paid until the end of the person’s life.

If the person who is paying the insurance dies, the benefit will be paid to a close family member in order to help in family life.

Base Retirement – National Retirement – Kokumin Nenkin

Every citizen resident in Japan, aged 20-60 years, may enroll in Kokumin Nenkin at the city hall where he/she resides. Those who work in a company do not to apply in this system. The monthly amount (in 2013) is 15,040 yen, and if the person pays retirement pension for 40 years, he or she will receive 786,500 yen per year.

This insurance is cheaper than private insurance because the government pays for part of the amount.

Social Retirement – Kousei Nenkin

For those who work in a company as hired employees, these people will be enrolled in the Kousei Nenkin system. The insurance is deducted directly from wages and values ​​are calculated based on the employee’s earnings.

Total System of Retirement Period

For anyone who is a Brazilian national, there is a cooperation agreement between Brazil and Japan allowing to use contribution time in the two countries for the calculation of retirement benefits. See more details in another video on this site.

 

At each stage of life, there are diversified expenses on citizen’s life. Knowing the costs in advance, we can build a life plan and  be prepared for the future.

Have you already made ​​a life plan with your family? With the information presented in this video, you can already start planning!

The information presented in this video was based on a seminar held in the city of Yokkaichi on September 21, 2013.