[The Dangers of Missing Pension Payments] 3 Remedies You Should Check Right Now to Avoid Regrets in Retirement

If you have periods during which you failed to pay your pension premiums, your retirement benefits could be significantly reduced.
However, many people feel anxious because they’ve “left unpaid premiums unaddressed” or “don’t know how to handle the situation.”

In fact, it’s said that only about 40% of people have paid the full amount without fail for 40 years.

In other words, more than half of people have periods of non-payment for one reason or another.

In this article, we’ll provide a clear explanation of the “remedial measures for unpaid pension contributions” you need to know to avoid regrets in retirement.

How Many Years Do You Need to Pay Into the Pension System to Qualify for Benefits?

The first thing to understand is the “qualifying period.”
Previously, 25 years of contributions were required, but this has now been reduced to 10 years.
However, even though you can qualify for benefits after 10 years of contributions, the shorter your contribution period, the lower your benefit amount will naturally be—so leaving unpaid periods unaddressed is risky.

Three Remedial Measures to Make Up for Unpaid Pension Contributions

① Retroactive Payments

This is a method of paying for the unpaid periods after the fact.

● Periods for which retroactive payments can be made

• In the case of delinquency: Back payments can be made only within 2 years.
• In the case of exemptions, deferrals, or special payment arrangements for students: Back payments can be made within 10 years.

In other words, it is extremely important to understand that “unpaid premiums” do not necessarily mean “you can always make up the payments later.”
In particular, if premiums remain unpaid for more than two years, you’re completely out of luck. The period of non-payment will directly affect your retirement pension amount.

② Voluntary Enrollment (Ages 60–65)

Your National Pension enrollment period ends at age 60, but if you have periods of non-payment, you can use the voluntary enrollment system to make up the shortfall.

● Key Points of Voluntary Enrollment

• Target Age Group: 60–65 years old
• Monthly Premium: Approximately 17,920 yen
• Enrollment is available for up to 5 years
• Effective for making up missed payment periods

If you “did not make payments due to a special exemption while you were a student” or “had a long period of exemption,” you can make up the shortfall through this voluntary enrollment.

③ Transitional Supplement (Employees Enrolled in the Employees’ Pension Insurance)

This system provides a supplement to your Employees’ Pension Insurance benefits equal to the amount corresponding to any past periods of non-payment if you continue working for a company after age 60 and remain enrolled in the Employees’ Pension Insurance.

● Features of the Transitional Supplement

• You can enroll in the Employees’ Pension Insurance until you are 60–70 years old
• The equivalent of any unpaid contributions will be made up for up to 10 years
• This will be automatically made up even if you do not opt for voluntary enrollment

For those who continue to work as company employees, this is the method that places the least burden on them and allows them to naturally fill in any gaps in their payment history.

First Step: Check Your Payment History

Before taking advantage of the relief measures, you must check your pension records.

● Verification Method

• Pension Statement
• Nenkin Net (Login available with My Number Card)

There have been cases in the past involving “missing pension records,” so the possibility of errors in the records cannot be ruled out entirely.

It has been noted that “there is a possibility that payments were not actually made, even though parents believed they had been.”

If the records are incorrect, you can have them corrected by submitting supporting documents to the pension office.

What happens if you leave unpaid pension contributions unaddressed?
The longer the period of non-payment, the more significantly your retirement benefits will be reduced.

• Even at the full amount, the Basic Old-Age Pension is approximately 800,000 yen per year.
• The amount is reduced further if there are periods of non-payment.
• Since payments are made only once every two months, it can easily lead to financial instability.

This is why so many people say, “I only realized my mistake once I retired.”

Summary: You can always make up for missed payments. Check your status right away.

If you leave unpaid pension contributions unaddressed, it will directly impact your life in retirement.
However, as explained here, there are always remedial measures available.

Three Ways to Make Up for Missed Payments

1. Retroactive Payments (within 2 years / within 10 years for exemptions and deferrals)
2. Voluntary Enrollment (ages 60–65)
3. Transitional Bonus (for those working from age 60 to 70 under the Employees’ Pension Insurance)

First and foremost, you should check your payment status on the Pension Net website.

To avoid regrets in your retirement years, the basic principles of pension planning are: “Pay when you can” and “Take advantage of the programs available to you.”