Sugawara-kun Co., Ltd.
Survey of people in their 20s and 30s about National Pension Insurance premiums: Approximately 40% of people in their 20s and 30s say they have a period of unpaid National Pension insurance premiums. The reason for nonpayment is “economic reasons” for just under 70%. – Tax accountant YouTuber explains, “The reality of people who have not paid National Pension insurance premiums” and how to deal with it” ~ ……
What used to be a problem of “20 million yen in retirement” is now said to be “40 million yen in retirement.” Moreover, this year’s national pension insurance premium is 16,980 yen per month, but in 2025 it will be raised by 530 yen to 17,510 yen. Therefore, Yuichi Sugawara, a tax accountant who runs the YouTube channel “Escape Tax Accountant Sugawara-kun” with over 700,000 subscribers, is a Category 1 insured person (sole proprietor, freelancer) who is between 20 and 40 years old. A survey was conducted on “National Pension Insurance Premiums” among 300 men and women nationwide.
Survey overview
Survey period: September 9th to 10th, 2024
Research method: Internet survey
Survey target: Male and female primary insured persons (individual business owners and freelancers) aged 20 to under 40 nationwide Number of valid respondents: 300 people
Research institution: Freeeasy
*When using the survey results in this release, please specify “Research by Sugawara-kun, a retired tax accountant.”
Survey results summary
・Approximately 40% of Category 1 insured persons have a period of nonpayment of their national pension.
・More than 50% of non-payers received a notice from the Japan Pension Service. The top notification content is “Dunning phone calls and mail”
・Less than 70% of non-payment reasons are due to economic reasons. ・Approximately 20% of non-payers use the late payment system Survey results
The Ministry of Health, Labor and Welfare has announced that the number of people who have not paid their National Pension Insurance premiums (hereinafter referred to as National Pension) is decreasing. Therefore, we asked first-class insured persons in their 20s and 30s, “Are there any periods in which you have not paid your national pension?” Although more than 60% (62.3%) said they had no outstanding payments, about 40% (37.7%) said they had a period of nonpayment, while 4.7% said it had been more than 10 years or had never paid. (6.0%) was also a certain number.
We asked 113 people who had an unpaid period of time, “Have you ever received a notice from the Japan Pension Service due to nonpayment of your National Pension?” 62 people who answered “Yes” (54.9%) answered, “What was the last notice you received?” When asked, “dunning phone calls and mail” (33.9%) were the most common response, followed by “demand letter” (14.5%), “red special demand letter”, “final demand letter” (both 12.9%), and “garnishment”. (6.5%).
Then why is the payment unpaid? The most common reason was “low income” (35.4%), followed by “financially difficult to pay (excluding low income)” (30.1%), with just under 70% citing financial reasons. Additionally, around 4% of people do not pay due to concerns about receiving their pension in the future, such as “I don’t know if I will receive it in the future” (25.7%) or “I think the total amount I will receive is less than the total amount paid” (12.4%). I divided it.
Finally, we asked those who had a period of unpaid tax and those who did not, “Are you aware of the “late payment system” that allows you to retroactively pay unpaid amounts for the past 10 years?” Half of those who have not paid arrears say they “don’t know” (23.9% in arrears, 48.1% not in arrears), while just under 70% of those who have arrears are aware of the period and have “used it” (have arrears). : 18.6%, no outstanding payments: 4.3%)
Tax accountant Yuichi Sugawara provides an easy-to-understand explanation of “The actual situation of people who have not paid their National Pension Insurance premiums and how to deal with them” It seems that the number of people who have not paid their National Pension (hereinafter referred to as “National Pension”) is increasing. I can understand the feelings of people who think they don’t want to pay because the pension they will receive in the future is small. However, it is better to pay the national pension because it affects not only your future pension but also other things, and you may lose a lot of money.
If I continue to be in arrears, what will happen if my property is seized? What should those who are actually in arrears or non-payers do now? I will also explain.
●Types of national pensions
As a general rule, national pension payments are to be made for 40 years (480 months) from age 20 to 60. By doing so, you will receive the full amount of your old-age basic pension in the future. There are three main types of national pension, and they generally fall under one of the following.
・Category 1 insured persons: Mainly self-employed individuals, others who work part-time, etc. and are not enrolled in company social insurance.
・Category 2 insured person: A person who is enrolled in the company’s social insurance, that is, a person enrolled in the employee’s pension (*1).
・Category 3 insured person: A person who is a dependent of the category 2 insured person.
There are quite a few people who have not paid their premiums, but the only non-payers are basically the 1st insured persons. For category 2 insured persons, the company deducts the payment from their salary and pays it to the government, so there is basically no omission in payment.Category 3 insured persons have no obligation to pay because they are dependents. It’s from. As category 1 insured persons, such as sole proprietorships, must make their own payments, non-payments occur. People between the ages of 20 and 60 must pay the tax even if they are students. (*2) Therefore, there is a certain number of Category 1 insured persons who have not paid their premiums. (*1) Employees’ pension includes the national pension.
(*2) There are also special exemptions such as the “insurance premium exemption system” and “insurance premium payment deferral system.” ●Number of people who have not paid their national pension
Currently, there are approximately 67 million people enrolled in the national pension system, of which 14.31 million are Category 1 insured persons, of which 1.06 million are non-payers. One in 14 people insured under Category 1 are non-payers, and the non-payment rate among people in their 20s is slightly higher due to reasons such as not completing the procedures, postponing them, or forgetting to apply for special exemption due to students. It’s a high situation. ●What happens if there is a non-payment?
If you pay the full amount of your national pension, you can currently receive 816,000 yen a year starting at age 65. However, if you do not pay your pension, your pension will be reduced, and if your payment period is less than 10 years, you will not receive a single yen. In order to receive a pension, you must make contributions for at least 10 years.
Also, if you do not pay, you will not receive disability pension or survivor’s pension. Disability pension is a pension that is subsidized by the government in the case of a disability that limits daily life or work due to injury or illness. Survivor’s pension can be received by the surviving spouse in the event of the death of a spouse. It’s a pension. This is quite large. This will cost you around 200,000 yen a year, but it would be better to pay the national pension while also thinking about future disability pensions and survivors’ pensions. ●Foreclosure due to non-payment! ?
It will not be foreclosed unless you consent, but in 2023, 30,789 cases were foreclosed. The following steps must be taken before being seized:
It’s dangerous if it arrives! Red “Special Demand Letter”
1. You will receive a payment reminder phone call or mail.
2. “Special demand letters” will arrive in three stages: blue for the first time, yellow for the second time, and red (pink) for the last time.
3. You will receive a “final demand letter”
4. You will receive a “demand letter” with a late fee added. 5. You will receive a “foreclosure notice”
6.Foreclosure
●Subject to seizure
The main properties subject to seizure include the following:
・Salary
If the take-home pay is 440,000 yen or less per month, one-fourth of the take-home pay
If the take-home pay exceeds 440,000 yen, 330,000 yen will be deducted from the take-home pay.
・Deposits and savings
・Real estate (such as your home)
·car
・Securities, etc.
In addition, not only the property of the delinquent person but also the property of family members such as the spouse and head of the household will be subject to seizure. Furthermore, the person’s savings account will also be frozen.
●Conditions of the person being seized
The following conditions apply to those who are subject to seizure: ・Annual income is 3 million yen or more (around 4 million yen in income) and unpaid period is 7 months or more
●What will happen to those who have already failed to pay?
There is a relief measure called the “later payment system” that allows you to retroactively pay unpaid amounts for the past 10 years. This basically applies to Category 1 insured persons.
If you are a Category 2 insured person who is enrolled in the Employees’ Pension, and you are enrolled in the Employee’s Pension until you are 60 years old, and you continue to pay your Employee’s Pension as a company employee, the amount of your Employee’s Pension after the age of 60 will be in the past. There is a “transitional addition system” in which the amount is applied to the unpaid portion of the National Pension and is treated as having been paid in full. If you do not pay your national pension, which is approximately 200,000 yen per year, for one year, your future old-age basic pension will be reduced by 20,000 yen per year. If you pay 200,000 yen later, the amount will increase by 20,000 yen per year, which means that you will only be able to get your money back after 10 years. Some people think that it’s fine if they live a long life, but if something happens within 10 years of turning 65, they will lose out on their insurance, which is why there are quite a lot of people who don’t pay their insurance.
Additionally, if you pay your national pension later, your taxes will be lower. The amount you pay later can be deducted from social insurance premiums, so your income tax and resident tax will be lower in the year you pay it later. The higher your income, the higher the tax rate, so if you want to pay extra, it’s best to do it in years when your income is high.
The biggest disadvantage of not paying your national pension is that you will not receive disability pension or survivor’s pension. Also, since the old-age basic pension you will receive in the future will be reduced, I think it is better to pay the national pension.
Yuichi Sugawara Profile
Born in Mie Prefecture in 1975. A tax-saving and cash flow expert who helps 85% of his clients turn a profit.
The YouTube channel “Escape from Tax Accountant Sugawara-kun”, which was launched in January 2023, has exceeded 700,000 subscribers. Blog “Get off! Tax accountant Sugawara’s management techniques to increase your money! ” was ranked number 1 in the national tax accountant blog ranking and was selected as Ameblo [Official] Top Blogger.
He has given lectures over 1,000 times, including to listed companies such as Google and APA Hotels, as well as foreign companies, and has received numerous interviews from various media.
The books “Ultimate Financing” and “50 Super Rare Financing Techniques” (both published by Gentosha) became bestsellers with a cumulative total of 27,000 copies sold.
On February 22, 2024, we released “Where did the tapioca shop go? Business tricks to understand how to start a business and make money”.
Blog: https://ameblo.jp/sannet/
YouTube: https://www.youtube.com/@datu-sugawara
X: https://mobile.twitter.com/sugawara11
Instagram: https://www.instagram.com/sugawara.smg
Threads: https://threads.net/@sugawara.smg
TikTok: https://vt.tiktok.com/ZSexq2jCP/
Facebook: https://www.facebook.com/yuichi.sugawara.5
Company Profile
Trade name: Sugawara-kun Co., Ltd.
Head office location: 7F Nagoya Mitsui Building Main Building, 1-24-30 Meieki Minami, Nakamura-ku, Nagoya, Aichi Prefecture
Representative: Representative Director Yoshiki Horie
Date of establishment: November 8, 2023
Capital: 1,000,000 yen
Business content: Seminar management, YouTube, advertising, consulting URL: https://sugawarakun.com/