This article looks at the 15 best places to retire in Japan. If you wish to skip our detailed analysis of how Japan’s economic resurgence is a beacon of opportunity, you can skip to 5 Best Places to Retire in Japan.
Japan’s Economic Resurgence: A Beacon of Opportunity
Japan, the third largest economy in the world, is the place to be in the years to come. The second quarter of 2023 has proven remarkably prosperous for the country’s economy, boasting a growth rate of 6%. Breaking down this rate translates to a quarterly gain of 1.5%, larger than the 0.8% median estimates. The figures imply that GDP in Japan has reached a record high in the period. Exports have largely been responsible for this growth, particularly car exports and inbound tourism. Nevertheless, spectators worry that economic growth is less likely to be sustained against the backdrop of a weakening domestic economy.
The economic forecast for 2024 by OECD predicts GDP growing by 1.1%, driven mainly by domestic demand through robust government support. The New York Times further notes that a significant change in how corporations are run in the country is also breathing new life into the economy. Citizen Watch promises to buy back up to a quarter of its shares; Canon shareholders have demanded a diverse board of directors, while other companies have promised their workers raises of up to 40%.
As a result, fiscal year 2022 witnessed a record $70 billion in buybacks, with dividends expected to total $100 billion by March 2024. In particular, Honda Motor Co., Ltd. (NYSE:HMC) stock was up by 45% in the first half of 2023. Many investors have been, in turn, increasingly showing interest in these big automakers, largely due to commitments from these corporations to electric vehicles and alternative fuel technologies. In light of this, Honda Motor Co., Ltd. (NYSE:HMC) announced its plans to make only EVs, or vehicles powered by hydrogen fuel cells by 2040.
Japanese Stock Market
With a solid year, and traditionally low interest rates, the Japanese stock market has been one of the best-performing this year. In fact, Morgan Stanley (NYSE: MS) has claimed Japan to be the most promising stock market in Asia. Japan’s Nikkei 225 index has witnessed a surge of almost 20% year to date, outperforming the S&P 500 (gaining 11.69% year-to-date). The Nikkei comprises 225 top stocks trading on the Tokyo Stock Exchange. The top companies include Fast Retailing (FRCOY), Tokyo Electron, Advantest, SoftBank (SFTBY), and Daikin Industries. Morgan Stanley further noted return on equity (ROE) for listed equities has more than doubled in the last ten years, all set to reach 11% to 12% by 2025.
Japan is also well-positioned to reap the benefits of “friend shoring,” which will enable shifting global supply chains to allies. This trend is particularly true for labor-light and automated processes such as precision manufacturing. The country will further its position in automation technology if it can increase the supply of such technologies to the US, Europe, and its other Quad2 allies. Considering these trends, Morgan Stanley (NYSE: MS) recommends investing in Japanese equities to diversify and mitigate risks associated with the S&P 500. Healthy levels of inflation coupled with shifting geopolitics are contributing to a favorable global trade dynamic for the country. Morgan Stanley (NYSE: MS) further forecasts that equity market valuations will have average P/E multiples in the range of 13 to 14.
Moving/Retiring to Japan
Owing to its burgeoning economic opportunities and favorable investment climate, expats, including retirees, are interested in moving to Japan. A common question on this subject is, can you retire in Japan as a foreigner? The answer is yes. While there is no specific retirement visa that the country is offering to expatriates, a long-stay visa can help expat retirees stay in the country.
For instance, individuals can apply for a long-stay (D) visa. After having this visa for a certain period of time, individuals can apply for permanent residency. Some requirements for retirement in Japan for foreigners include being financially independent, having valid health insurance, and not having a criminal record.
Once approved, expatriates can enjoy the tranquil cherry blossom-filled parks, striking countryside landscapes, rich culture, excellent healthcare, and modern amenities.
Yoshihiro Miyagi/Shutterstock.com
Methodology
To compile the list of best places to retire in Japan, we used several sources such as Retirepedia, Adam Fayed, and Plan a Retirement, amongst others. We also looked at several expat forums to determine the best places expats recommend for living in the country.
A consensus approach was used to rank the places. One point was awarded to each place each time a source recommended it. Scores were summed up, and places were ranked based on their total scores in ascending order.
The cost of living discussed in the paragraphs below pertains to an individual retiree’s monthly living expenses in Japan, including rent for a one-bedroom apartment in the city/town center. The figures are sourced from Nomads List, Cost of Live, and Retirepedia, amongst others.
Here are the best places to retire in Japan:
15. Kanazawa
Insider Monkey Score: 2
Embraced with natural landscapes and sitting close to the sea, Kanazawa is a popular city to retire in Japan. It is home to numerous historical attractions such as the Kanazawa Castle, Kenrokuen Garden (considered one of Japan’s most beautiful gardens), and the Nagamachi samurai district. Natural attractions such as the Noto Peninsula and hiking trails are nearby, offering recreation opportunities. An individual retiree can enjoy a comfortable lifestyle here, with monthly expenses ranging from $1,500 to $2,000.
14. Kamakura
Insider Monkey Score: 3
Kamakura, often dubbed the “Kyoto of Eastern Japan,” presents retirees with rich history, scenic beauty, and pleasant climate. Undoubtedly, it is one of the best places to retire in Japan from the USA to enjoy a cost-effective living while enjoying the scenic outdoors. Lush forests, scenic beaches, and hiking trails make retiring here worthwhile. Local cuisine is delectable as well. An individual retiree can enjoy a comfortable lifestyle here, with monthly expenses ranging from $1,500 to $2,000.
13. Nagasaki
Insider Monkey Score: 3
With its captivating harbor, undulating terrain, and picturesque coastal vistas, Nagasaki stands out as one of the best places to retire in Japan. Cultural festivals, diverse cuisines, and a peaceful atmosphere make retiring here a delightful experience. Historical sites such as the Atomic Bomb Museum and Dejima are well worth visiting and exploring the history of Japan. There are modern healthcare facilities available as well. An individual retiree can live here for $1,573 per month.
12. Kobe
Insider Monkey Score: 3
Famous for its signature marbled beef and scenic setting of mountains framing the harbor, Kobe is one of the top cities to retire in Japan. It’s ideal location between the Rokko mountains, and the sea provides the best scenic views and the perfect backdrop to call home. The climate is mild and temperate here, ideal for enjoying activities throughout the year. The gourmet scene is well-established, too, a plus for the food-enthusiastic retiree. An individual expat can live in Kobe for an average of $1,445 per month, spending $471 on rent.
11. Sendai
Insider Monkey Score: 4
Sendai is located in the Tohoku region of Japan. It is revered for natural attractions such as the scenic Matsushima Bay, hot springs (onsen), and hiking trails in the nearby mountains. The historic Zuihoden Mausoleum, Sendai Castle, and numerous museums add the right historical touch to the city, and retirees also get to enjoy its unique culture and traditions. Dishes like gyutan (grilled beef tongue) and zunda mochi (sweet rice cakes with green soybean paste) offer unique regional flavors to its residents. An expat retiree needs an average of $1,691 to retire here monthly, with $539 spent on rent.
10. Hiroshima
Insider Monkey Score: 4
While many people associate Hiroshima with destruction, Hiroshima has since become a symbol of peace and reconciliation. The Hiroshima Peace Memorial Museum is one of the top attractions in the city. The Chugoku Mountains up north and the Seto Inland Sea to the south make it an attractive destination as well. The cultural scene is also rich, with many museums, theaters, and art galleries. The average cost of living for an individual retiree is $1,461 per month.
9. Nara
Insider Monkey Score: 4
Retirees who wish to escape to natural retreats now and then should choose Nara as it is one of the best places to retire in Japan. Embraced by natural landscapes such as the Yoshino-Kumano National Park and hot springs (onsen), the city provides retirees the perfect opportunity to relax and unwind. Once Japan’s capital, Nara is also home to several UNESCO heritage sites, such as the Todai-ji Temple. It is nestled in a scenic valley, with beautiful parks, Japanese gardens, and even Shinto shrines. Deer roam freely in the prefecture, a unique yet enchanting sight to witness. An individual retiree can live in Nara for $1,000 on average.
8. Okinawa Island
Insider Monkey Score: 5
Okinawa, Japan’s most tropical island, is the perfect way to experience a rural escapade for retirees. Comprising over 150 islands, it is revered for its broad beaches, tropical climate, and beautiful coral reefs. The island boasts one of the highest life expectancies in the world, with numerous people living as long as 100 years. Okinawa boasts a culture uniquely different from Japan; a fusion of elements from mainland Japan, China, Korea, and Southeast Asia. The healthcare system is well-developed, and retirees get to enjoy an active lifestyle through a balanced diet and physical activity. Unique culture, affordable living costs, beach lifestyle, and modern healthcare make Okinawa one of the best Japanese places for foreigner retirees. An individual expat retiree can afford to live here for an average of $1,800 per month.
7. Nagoya
Insider Monkey Score: 5
Located in the center of Japan, Nagoya is best known for its cultural attractions, affordability, and local cuisine. Historical sites such as the Nagoya castle, cultural museums, and traditional festivals add to the appeal of retiring here. Retirees must try its unique local cuisine, including dishes like hitsumabushi (grilled eel), kishimen (flat udon noodles), and tebasaki (chicken wings). Moreover, there are many green spaces and parks to relax in. Nagoya also has a growing expatriate community. On average, one-bedroom apartments in the city center cost $721, while the overall cost of living for an individual retiree is $1,693 per month.
6. Fukuoka
Insider Monkey Score: 6
Sitting on the northern shore of Kyushu island, Fukuoka is one of the best places to retire in Japan for retirees. Fukuoka is a nice blend of pristine beaches, modern shopping malls, and ancient temples. While the quality of life is almost the same as in big cities, it is much more affordable. An individual retiree can expect to live a comfortable retirement on $1,236 per month.
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Disclosure: none. 15 Best Places to Retire in Japan is originally published on Insider Monkey.