It would be best if there was a “bridge” that would allow you to postpone your pension until age 70… Final conclusion of “How much do you need in retirement?” according to a professional I want to prepare 9 million yen for medical expenses + nursing care expenses separately from living expenses | PRESIDENT Online (President online)

How much will you need in retirement? Kayo Oe, a defined contribution pension analyst, said, “If a person is expected to receive a public pension of 150,000 yen a month, if they defer receiving it until age 70, their monthly pension will increase to 213,000 yen, which will almost cover their living expenses. I feel relieved if I can prepare 9 million yen for medical expenses and nursing care expenses separately from this.”

*This article is a re-edited portion of Kayo Oe’s “Double your assets with the new NISA and iDeCo: A new way to increase money in the 100-year lifespan” (Nikkei BP).

The average expenditure after retirement is 268,508 yen

Let’s take a look at the structure of the money you leave after retirement, that is, your expenses.

For reference, according to the 2022 edition of the Family Income and Expenditure Survey Report published every year by the Statistics Bureau of the Ministry of Internal Affairs and Communications, in the case of an unemployed household consisting of only a married couple aged 65 years or older (elderly couple unemployed households), consumption The average monthly expenditure is 236,696 yen, and in addition to this, the average monthly non-consumption expenditure such as social insurance premiums and taxes is 31,812 yen, so the total average monthly expenditure is 268,508 yen. Masu.

For a couple between the ages of 65 and 80, it will be about 48.33 million yen, and for 25 years until age 90, it will be about 80.55 million yen (see Chart 1. I will explain the relationship with income later) ).

How much do you use it in your daily life?

It is said that the amount of money required to live in retirement is approximately 70% of the amount spent during one’s working life, including everything else. So, first of all, you need to figure out how much your current living expenses are each month.

First of all, daily living expenses. Do you all keep a household account book? Such details! Some people may think this, but it is an essential task in order to create a secure retirement fund from your limited income.

Most of the time, there are some unnecessary expenses that you forgot you were even paying for. Cashless payments have become commonplace, and credit card payment details are no longer visible unless you check them on the website, so you may find yourself paying for subscription services even though you hardly use them. I don’t notice it. If you realize this and cancel the contract and use it as a source of funds for retirement, you can increase the amount of your savings without changing the level of fulfillment of your life. In addition, lowering your living expenses during your working life will also reduce wasteful spending in your retirement, so you can kill two birds with one stone.