iDeCo (individual-type defined contribution pension) is set for a major overhaul in December 2026. Two things change: you can now enroll until under age 70, and the contribution cap rises substantially. The self-employed move from ¥68,000 to ¥75,000 per month, while company employees and civil servants gain access to a cap of up to ¥62,000 per month — with the biggest gains going to people who previously had a small cap because they belonged to a corporate pension. This article lays out what changes and when, based on official sources, who benefits, and the honest caveats around locking up your money and how withdrawals are taxed.
The bottom line: what changes from December 2026
| Item | Current | After the December 2026 reform |
|---|---|---|
| Eligible age to enroll | In principle under 65 | Up to under 70 |
| Contribution cap for the self-employed etc. (Category 1) | ¥68,000/month | ¥75,000/month |
| Contribution cap for company employees / civil servants (Category 2) | ¥20,000–23,000/month | Cap of ¥62,000/month (minus contributions to other plans) |
| When the higher cap applies | — | From the January 2027 contribution onward |
The reform to the scheme itself takes effect on December 1, 2026. However, you can actually pay in at the raised cap only from the January 2027 contribution (iDeCo official site; Ministry of Health, Labour and Welfare). For the basic tax-saving mechanics of iDeCo itself, see iDeCo's tax-saving effect.
Change 1: enrollment extended to "under age 70"
Currently, you can newly contribute to iDeCo in principle only until under age 65 (conditional on being insured under the National Pension). After the reform, you will be able to keep enrolling and contributing until under age 70. For people in their 60s who keep working and stay enrolled in Employees' Pension Insurance, or who voluntarily enroll in the National Pension, this extends by up to five years the period during which you can invest tax-free while also claiming the income deduction.
Change 2: a substantial rise in the contribution cap
The biggest impact of this reform is the higher contribution cap. In particular, company employees and civil servants (Category 2), whose cap used to be finely split into ¥20,000–23,000/month depending on whether they had a corporate pension, will now be unified under a common cap of ¥62,000/month.
| Enrollment category | Cap after the reform |
|---|---|
| Category 1 (self-employed / freelancers etc.) | ¥75,000/month (combined with the National Pension Fund etc.) |
| Category 2 (company employees / civil servants) | ¥62,000/month minus the equivalent of employer contributions to corporate-type DC/DB etc. and matching contributions |
| Category 3 (full-time homemakers) | Unchanged at ¥23,000/month |
Because contributions are fully deductible from income, a higher cap directly translates into bigger tax savings. That said, iDeCo money is in principle locked up until age 60. How to balance this against your emergency fund and NISA is discussed in iDeCo vs. NISA.
Don't forget the "exit": how you receive the money changes the tax
With iDeCo, it's not just the accumulation phase — how you design your withdrawal makes a big difference to your take-home amount. In particular, if you take it as a lump sum and the timing is close to your company retirement allowance, the retirement income deduction gets reduced through overlap elimination, triggering unexpected tax.
The rule for avoiding this overlap has been extended from the previous "5 years" to "10 years," effective January 2026 (the FY2025/Reiwa 7 tax reform). If you receive iDeCo first and the retirement allowance later, you need to leave a 10-year gap or the deduction gets cut. Now that you can contribute more, designing the order of receipt matters more than ever. See the order of receiving iDeCo and your retirement allowance for worked examples.
Do this today
- Check whether your employer has a corporate-type DC or DB plan, and work out how much you'll actually be able to contribute to iDeCo after the reform (the amount left after subtracting from ¥62,000)
- If your current contribution is below the cap, book the increase with your plan administrator now so it takes effect from the January 2027 contribution
- Sketch a one-page timeline of how you'll work after 60 and when you plan to receive iDeCo, your retirement allowance, and your pension (to manage the 10-year rule)
More actions: the Take-Home Boost Checklist.
Frequently Asked Questions
Q. From when can I actually contribute the higher iDeCo amount?
A. The scheme itself changes on December 1, 2026, but you can pay in at the raised cap only from the January 2027 contribution. If you want to increase your contribution, you need to complete a contribution-change procedure with your plan administrator (a securities firm, bank, etc.).
Q. Can any company employee contribute up to ¥62,000/month?
A. No. The ¥62,000 is the "combined cap for iDeCo and your corporate pension." If your employer's corporate-type DC or DB plan makes employer contributions, or you have matching contributions, your iDeCo cap is what remains after subtracting that amount from ¥62,000. The less corporate pension you have, the more your cap expands.
Q. Who can enroll up to age 70?
A. From December 2026, the eligible age extends to under 70, but people who have already started receiving the Old-Age Basic Pension or iDeCo old-age benefits cannot make new contributions. The main beneficiaries are people in their 60s who keep working under Employees' Pension Insurance, or who voluntarily enroll in the National Pension.
Q. Does increasing my contribution always pay off?
A. Because contributions are fully deductible from income, your tax saving increases, but iDeCo money is in principle locked up until age 60. Diverting money you need for living expenses or education can leave you short on cash. The basic approach is to balance it against NISA, which you can withdraw anytime, and increase your contribution only within a comfortable range.
- iDeCo official site (National Pension Fund Association) — notice of the scheme reform (Japanese)
- Ministry of Health, Labour and Welfare — Defined Contribution Pension scheme (Japanese)
- Minna no Zeikin: the order of receiving iDeCo and your retirement allowance (the 5→10-year rule)
This article is general information. The specific caps and procedures for your contributions depend on your employer and plan administrator. The scheme and figures may change through future cabinet and ministerial orders, so check the official site for the latest details.