The UK and Japan have recently entered into a reciprocal agreement on social security, which will provide increased flexibility and security for individuals who have lived or worked in both countries. This agreement was signed on 23 October 2020 and comes into effect on 1 January 2021.

Under the new agreement, individuals who have paid into the social security schemes of both the UK and Japan will be able to claim benefits from both countries. This includes state pensions, disability benefits, and survivor benefits. This will particularly benefit employees who have been posted to work in either country for short periods of time, as they will be able to receive benefits based on their total contributions across both countries.

In addition to providing increased flexibility, the agreement also helps to prevent double contributions. Before this agreement, individuals who had paid into both the UK and Japanese social security schemes may have been required to pay contributions into both systems simultaneously, leading to a potential duplication of payments. The reciprocal agreement will now enable individuals to make contributions into only one system at a time, reducing the financial burden on employees and employers.

The agreement also includes provisions for the coordination of medical and family benefits between the two countries. This means that individuals who are eligible for medical care in one country will be able to receive it while living in the other country. It also means that families who are separated by international borders will be able to claim benefits, such as child allowances and maternity benefits, based on their combined contributions across both countries.

The UK and Japan have a long-standing economic and political relationship, and this new reciprocal agreement on social security strengthens this bond even further. It is a positive development for individuals who have lived or worked in both countries and will provide them with increased security and flexibility in their retirement and beyond.