◆ Will I be able to live with my own funds and insurance products after retirement?
The name is “Money Plan Clinic”, which answers the problems of households that you have received. The counselor this time is a 53-year-old office worker who is thinking of retiring as it is because she is on leave due to illness but cannot expect recovery.
If possible, the husband also wants to retire at the age of 60 and live with his existing financial assets and insurance pensions. Mr. Yasuhiko Fukano, a financial planner, will give you advice.
Natsu Aki (pseudonym)
Female / office worker / 53 years old
Tokyo / Rental housing
◇ Family structure
Husband (company employee / 54 years old), 3 children (worker, 3rd year of university, 6th grade of elementary school)
◇ Consultation content
・ I am ill and have difficulty returning to work. Currently on leave. Is it possible to make ends meet only with my husband’s salary (take-home 190,000 yen) and savings? The retirement allowance is 18 million yen.
・ Should we consider moving to reduce housing costs?
・ After the age of 60, my husband will live on 3 private pension insurance companies and I will live on 7 private pension insurance companies.
・ The annual public pension is 1.19 million yen for husbands and 2.12 million yen for wives.
◇ Household income and expenditure data
The chart shows Natsu Aki’s household income and expenditure data.
◇ Supplementary household income and expenditure data
(1) Breakdown of insurance
・ Medical insurance (whole life insurance) = insurance premium 2670 yen (half price of insurance premium from 60 years old)
・ Mutual insurance (death 5 million yen, hospitalization 5000 yen) = annual premium 28,828 yen
・ Mutual insurance (death 10 million yen, hospitalization 10,000 yen) = insurance premium 2280 yen
・ Mutual insurance (death 3 million yen) = insurance premium 1230 yen
・ Income compensation insurance = premium 1324 yen
・ Individual annuity insurance (fixed for 5 years from 61 years old, annual amount 600,000 yen) = full term prepayment
・ Individual annuity insurance (fixed for 15 years from 60 years old, annual amount 480,000 yen) = full term prepayment
・ Individual annuity insurance (variable from 60 years old to 20 years, pension guarantee amount 390,000 yen) = premium 20,000 yen
・ Individual annuity insurance (fixed for 15 years from 61 years old, pension amount 360,000 yen) = full term prepayment
・ Individual annuity insurance (whole life from 62 years old, annual amount 130,000 yen) = insurance premium 5,000 yen, bonus monthly 20,000 yen addition
・ Individual annuity insurance (whole life from 60 years old, annual amount 360,000 yen) = full term prepayment
・ Long-term care annuity insurance (fixed for 10 years from 61 years old, annual amount 700,000 yen) = full term prepayment
・ Fire insurance (household goods 10 million yen) = annual premium 13,300 yen
・ Medical insurance (whole life insurance) = insurance premium 2640 yen (half price of insurance premium from 60 years old)
・ Mutual insurance (death 20 million yen, hospitalization 5000 yen) = annual premium 35,047 yen
・ Individual annuity insurance (fixed for 10 years from 60 years old, pension amount 1 million yen) = full term prepayment
・ Individual annuity insurance (life from 60 years old, annual amount 150,000 yen) = insurance premium 5,000 yen, bonus monthly 20,000 yen addition
・ Individual annuity insurance (life from 60 years old, pension amount gradually increased by 3%, total amount received up to 90 years old is almost 10 million yen) = full term prepayment
・ Whole life insurance (death insurance 1 million yen) = full term prepayment
・ Medical mutual aid (whole life, hospitalization 5000 yen) = insurance premium 1720 yen
・ Individual annuity insurance (fixed for 10 years from 60 years old, annual amount 480,000 yen) = annual premium of 100,65 yen
・ Fire insurance (household goods 3 million yen) = annual premium 3750 yen
・ Mutual aid (hospitalization 5000 yen) = insurance premium 900 yen
・ Student insurance (total maturity of 1.8 million yen, received in 5 installments for 14 to 20 years old) = full term prepayment
・ Individual annuity insurance (fixed for 10 years from 55 years old, annual amount 480,000 yen) = annual premium 92,160 yen
・ Endowment insurance (maturity in 2021, maturity fee 1 million yen) = full term prepayment
・ Endowment insurance (maturity in 2022, maturity of 1 million yen) = full prepayment
(2) Living expenses for the second child
Living alone. At that point, he will give him 1.5 million yen, and he will be able to cover his living expenses until he graduates. The shortage will be covered by the person himself with a part-time job.
(3) How to use the bonus (last year’s example)
Domestic travel 50,000 yen, annual premium payment 270,000 yen, premium bonus payment 80,000 yen, the rest is savings
(4) Legacy for children
For children, there is no intention of leaving financial assets other than paying the national pension until becoming a member of society and paying the premium for individual annuity insurance. However, he is the recipient of the insurance death benefit.
(5) About housing
Will be rented for the rest of your life.
◇ Three advices from FP Yasuhiko Fukano
Advice 1: There is no financial concern if you retire as it is
Tip 2: No need to downsize your life
Advice 3: Reduce insurance and slim down your household
◆ Advice 1: There is no financial anxiety even if you retire as it is
I’m sick, so I’d like to ask you if there is any problem with your money plan if you retire as it is, but it’s okay. I hope that you will be retired with peace of mind and concentrate on your treatment.
Let’s make a trial calculation. First, let’s assume that Mr. Natsu, the counselor, will basically continue the same life as he is now. Therefore, the monthly living expenses are 407,000 yen (for convenience, the education expenses of 15,000 yen are deducted).
If you add the annual payment of insurance premiums and travel expenses, which have been paid out from the bonus, on a monthly basis, it will be about 440,000 yen. Since the income is only for the husband, the income and expenditure will be a deficit of about 242,000 yen every month.
Also, apart from this, it is necessary to consider the future education costs of the younger child. The amount varies depending on the course, but here I will assume it is 10 million yen.
The current financial assets are 53.8 million yen in total of savings and investment products. If Natsu Aki’s retirement allowance is added to this, it will be 71.8 million yen. From here, we will deduct a total deficit of 17.4 million yen for living expenses for 6 years until the husband reaches retirement age.
In addition, regarding educational expenses, if the maturity of student insurance is 1.8 million yen and the maturity of endowment insurance is 1 million yen x 2 for the budget of 10 million yen, the actual savings will be derived. 6.2 million yen.
Therefore, the amount of money left on hand at the age of 60 for the husband is 48.2 million yen.
Next, regarding the income and expenditure after the age of 60, suppose that the husband fully retires at this age. The income comes from the public pension and the insurance, but the living expenses are 400,000 yen a month because the insurance premiums are reduced by about 40,000 yen on a monthly basis after the age of 60. 24 million yen in 5 years. If you get all this out of your savings, you’ll have 24.2 million yen left.
And, although it is a trial calculation ahead of schedule, I will add the amount of individual annuity insurance received here. The total amount of the couple with a fixed payment period is 38.2 million yen.
If the whole life type lived up to 90 years old, it would cost about 29 million yen. The total amount of payment will be 67.2 million yen, so when the husband is 65 years old, he will have a total of 91.4 million yen in financial assets.
The amount of public pension received by a married couple is 3.31 million yen. The monthly amount is 276,000 yen, but if the actual take-home amount after deducting taxes and social insurance premiums is 240,000 yen, the monthly deficit is 160,000 yen. It costs 48 million yen in 25 years if you live to be 90 years old.
In other words, at the age of 90, about 43.4 million yen remains as cash on hand. Considering the risk of longevity, medical care, and long-term care costs, it can be said that there is no need to worry about financial resources.
◆ Advice 2: No need to downsize your life
As I estimated earlier, the cost of living will probably be lower as you get older. In addition, the retirement allowance for the husband was unknown, so it is not added. Furthermore, every year, a total of 2 million yen in calendar year gifts from the couple’s parents is excluded from the estimation.
If we continue for another 5 years, we will have an additional 10 million yen and financial margin. In any case, there is no need to downsize your life, such as lowering housing costs. Travel expenses are only 50,000 yen a year, but there is no problem if you spend more money.
◆ Advice 3: You can reduce insurance and slim down your household budget.
There is no need to collect and review the household budget. However, I feel a little wasteful about how to get insurance.
If you are uneasy and unavoidable if the guarantee is not great, or if you have to join due to work, you can leave it as it is. However, if this is not the case, I think it is okay to cancel all of the insurance that you are currently paying, except for individual annuity insurance, medical insurance, and fire insurance.
Death protection is to prepare for the life of the bereaved family in case of emergency. Moreover, he has no intention of leaving financial assets to his three children. In that case, it would be good if the elementary school children could prepare the funds to become members of society, so the current savings should be sufficient.
As for medical insurance, the minimum necessary insurance is secured by the medical insurance that both husband and wife have. It can be said that it is rational to use the floating insurance premiums for savings and to pay for medical expenses that cost more than that.
Speaking of the burden, it is still a reduction of about 10,000 yen. It’s not a big plus for the whole household, but it also makes sense to review it in terms of slimming down the household.
◆ Impressions from the counselor “Natsu Aki”
My wife, my wife, has a higher salary, and when I retired, my husband was particularly worried about whether I could live on the salary of one husband.
Thanks to Dr. Fukano’s accurate advice, my husband feels at ease and I can concentrate on my treatment. I would like to immediately consider reviewing the insurance you pointed out. I’m really thankful to you.
The one who taught me … Mr. Yasuhiko Fukano
One of the veteran FPs familiar at the Money Plan Clinic. Through various media, we provide information on general money-related matters such as household management methods and investment enlightenment. All About Also active as a savings and investment trust guide.
Interview / text: Kyotake Shimizu
Sentence = Arujan Editorial Department