Will the number of subscribers increase due to iDeco's premium limit increase

It seems that iDeco's premium limit will probably increase.

I started iDeco last year, but since I created a corporation and became an executive, the premium limit was 23,000 yen.

If you think about it, it's a story called “that's right,” but after creating a corporation, “Oh, we have to reduce premiums, right?” I realized, it was a blind spot...

iDeco is a good system that I can recommend to many people.

It is said as a disadvantage that there is a financial constraint where “you can't withdraw it until age 60,” but since it's a “pension” in the first place, it's contrary to the original purpose if you can withdraw it along the way.

After all, if it is necessary to prepare retirement funds separately from public pensions, being able to increase retirement assets while saving taxes is much better than bank deposits.

I understand that there are concerns about “what should I do if I suddenly need a set amount of money,” but I should prepare for that.

It would be great if NISA were able to deduct premiums, though.

However, “being able to withdraw” can also be a disadvantage, so I think it is better to think of it as a good system that can be divided and accumulated as retirement funds.

So, when I looked up how many subscribers it is now, it seems to be over 3 million people.

Furthermore, it seems that the number of DC subscribers is over 8 million.

Since it is now possible to enroll in both, I think there is an overlap, but the total number of people enrolled in defined contribution pensions is roughly around 10 million people.

The enrollment rate is probably in the 10% range.

Hmm, there aren't many.

I think there are a lot of people who are worried about their retirement assets.

I also did a lot of research last year and finally started, and even though there was DC when I was an office worker, I thought, “Choose your own investment products?! I can't I can't! Also, I don't know the procedure for changing jobs, so it's impossible!” I didn't join because of that feeling.

Since they were enrolled in a defined benefit pension (DB), they probably thought they wouldn't be able to take operational risks.

I didn't even know anything about taxes.

For my part, I think it would be better if more people like me started iDeco or DC to the extent possible after gaining knowledge.

I don't think that an increase in the premium limit will have a big direct effect on the increase in subscribers, but if opportunities to see it increase due to news, etc., it's nice because it becomes an opportunity to try to know.

I wonder what I should do if the upper limit increases.

Well, I wonder if it would be smartest to transfer part of what is multiplied by small business mutual aid to iDeco.

In addition to being able to deduct premiums and being tax-saving, small-scale enterprise mutual aid has a loan system with an interest rate of 1.5%, so it's like a “withdrawable iDeco.”

The losing point is that the yield isn't a big deal, though.

Since the monthly upper limit is 0.07 million yen, which is multiplied by 0.84 million yen per year, you can save a total of 30% with an income tax rate of 20% and a 10% resident tax rate, and about 0.84 million yen x 30% = 0.25 million yen every year.

If you were to borrow 1 million yen, 0.015 million yen would be taken as interest, but considering tax savings, it's a great deal.

There is also a way to turn funds borrowed from small-scale enterprise Kyosai into an investment with a good yield, and there are also people who recommend this.

If you transfer borrowed funds to iDeco, you can enjoy either deduction.

However, if that is the case, a relatively large amount of money will be held up, and there is a possibility that the secret trick of old age where the retirement income deduction can be used twice will not work well.

The tax accountant who is indebted to me didn't know about this, so maybe it's not that major, but you can use the retirement income deduction twice.

It's been a long time, so I'll write a separate column.

The conclusion of this column is “Everyone should study iDeco, and if it seems like they can do it, they should do it.”