Retirement Allowance & Pension Schemes in Japan
Providing retirement benefits in Japan is not just a perk—it’s a strategic, tax-efficient tool for both employers and employees. SBC Group offers customized retirement allowance life insurance schemes that comply with Japanese law while maximizing tax savings and long-term security.
Whether you’re a domestic business or a foreign company employing staff in Japan, we help you plan, implement, and manage structured retirement benefit programs for executive and employee tiers alike.
What is a Retirement Allowance Scheme?
A Retirement Allowance Scheme (退職金制度) in Japan allows companies to:
- Set aside pre-tax funds over time to pay employees a lump-sum retirement benefit
- Use life insurance products (approved by the Ministry of Finance) as funding vehicles
- Reduce corporate tax liability while providing meaningful employee benefits
These schemes are common among Japanese corporations and are increasingly used by foreign-owned businesses for employee retention and tax efficiency.
Benefits of a Structured Scheme
| For Employers | For Employees |
| Tax-deductible contributions | Guaranteed lump-sum benefit at retirement |
| Improved retention and recruitment | Tax-favorable treatment of benefit payments |
| Predictable benefit liabilities | Increased job satisfaction and loyalty |
| Enhanced company reputation | Long-term financial security |
What SBC Provides
✅ Scheme Design
Customized plan aligned with your business size, goals, and employee structure
✅ Insurance Brokerage
Licensed as a Life Insurance Broker by Japan’s Ministry of Finance (via Sumida Brokers & Consulting)
✅ Documentation & Compliance
Preparation of all legal documents, contracts, and compliance filings
✅ Review & Optimization
Regular performance evaluation, benefit adjustments, and tax impact analysis
✅ Multi-language Support
English and Japanese service for foreign executives and HR teams
Who Is Eligible?
These schemes are ideal for:
- Executive-level staff and founders
- Foreign executives working under Japanese contracts
- Japanese employees seeking structured retirement planning
- Companies wishing to offer top-tier employee benefits and tax optimization
Legal & Tax Framework in Japan
- Contributions to qualifying insurance-based retirement schemes are tax-deductible for the company
- Retirement lump-sum payments are taxed at preferential rates for recipients
- Payments are typically made upon retirement, resignation, or under pre-defined triggers (e.g., disability)
SBC ensures that your structure is fully compliant with Japanese labor, tax, and insurance laws.
Why SBC Group?
🏢 Licensed Insurance Advisory
We are authorized by the Ministry of Finance to design and implement these schemes
📊 Integrated Tax & HR Expertise
We combine retirement planning with payroll, tax filing, and HR compliance
🧾 Legacy & Trust
Part of the Sumida Tax & Accounting legacy, active since 1927
🧠 Strategic Guidance
We go beyond administration—we help you align retirement planning with your broader business and tax strategy
Let’s Build a Future-Focused Retirement Plan
Protect your people, strengthen retention, and optimize your company’s tax position with a custom-designed retirement allowance plan.
Contact Information
📍 4-3-9 Nihonbashimuromachi, Chuo-ku, Tokyo 103-0022
📧 contactus@sbc.gr.jp
📞 +(81) 3 6262 5444