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Published: March 25, 2016
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The specific amount that the pension cannot exceed is not indicated anywhere.
Theoretically, whatever we earned, that’s what we’ll get.
But there are still some nuances that can limit it in size or, on the contrary, make it larger.
- What affects the size of the old-age pension?
- Which specialists have the highest pensions in Russia?
What does a pension benefit in the Russian Federation consist of?
Pension in our country is calculated from two components:
- Basic;
- Insurance.
Now a third component has appeared, which is called funded, but it is relevant only for the current working population, so we will not consider it in this context.
The insurance portion depends on the length of service and the number of contributions made during the time the person worked. As a result, the accumulated amount is divided by the approximate life expectancy of the pensioner in order to be paid in equal monthly installments. The basic pension is so called because it is the common basis for any salary. This is a fixed salary that a citizen can claim upon reaching a certain age. Some kind of guarantee that allows you to feed yourself in old age.
What is the source of the base salary?
The key part of the funds comes from contributions from organizations. Since 2005, the contribution has been 20%, and before that it was 28%. However, the amount of contributions does not affect the basic pension, because the state needs to provide a minimum maintenance to all pensioners, and not just those who had high wages during their working years.
What categories of citizens are entitled to a basic pension?
First of all, those who have reached the required age, as mentioned a little higher, but this is not the only category.
Applicants for pension provision:
- Citizens who have lost their breadwinner. These may be minors or people with disabilities. Also, a certain salary is awarded to widows of military personnel whose husbands died in service. But this is a different category that is more impacted by changes in military pensions.
- Disabled persons whose incapacity is confirmed by the necessary documents.
- Persons who have dependents under their care who cannot support themselves.
The fixed base amount (FBR) is a certain benefit salary, which may vary depending on the reason for payment.
Largest pension amount
The size of the pension is influenced by a fairly large number of different factors. These include length of service, the age at which a citizen stopped working and retired, the amount of his salary, accumulated pension contributions and much more.
The government's pension reform, which began in 2015, offers a number of mechanisms through which you can increase your pension. Concerned with reducing pension costs and avoiding raising the retirement age, Russian legislators have resorted to encouraging later retirement. This makes it possible to increase its size in proportion to the time worked. Thus, later retirement stimulates its increase.
Does the benefit amount differ for different categories?
Legislative act number 400 states that the amount of the basic payment is calculated depending on the category, as well as a number of other conditions. The conditions are almost the same parameters that determine the category that affects the type of pension salary. Only one reason is added. This is northern experience, which increases the value and also allows you to retire earlier.
Accordingly, it is already obvious that the payments are different. For example, only 50% of the basic share is included in the salary for the loss of a breadwinner, and in the case of persons in care, their number plays a key role.
Applicants for the maximum benefit are:
- Citizens who worked in the Northern regions;
- Persons with the first group of disabilities;
- People who have reached 80 years of age.
The minimum salary is 2402.5 rubles, and the maximum is 21622.98 rubles. At the same time, the average FBI ranges from 6,500 rubles to 19,000 rubles.
What documents are needed to apply for a pension?
To do this, you need a package of documents that is submitted to the Pension Fund at your place of residence:
- Citizen's passport;
- Work book containing all information about places and periods of work;
- Certificate of disability, if any;
- Marriage certificate;
- Birth certificates of children;
- Certificates of current earnings, family composition and place of residence.
More documentation is required if the reason for applying to the Pension Fund is the loss of a breadwinner or the presence of dependents. Then you will need information on income confirming the absence of a subsistence minimum in the region.
Formula for calculating insurance pension
To calculate the insurance pension, you need to add the number of IPCs multiplied by their cost to the base fixed rate. For example, you can calculate a pension with the number of IPCs equal to 100: fixed part (4823) + number of points (100) * cost of one point (78.58) = 12,681 rubles.
The minimum size of the insurance pension by region should not be below the subsistence level. If this fact occurs, the state establishes a social pension for the citizen, or he receives certain bonuses in order to equalize the amount of pension payments with the amount of the subsistence minimum.
How is the base share recalculated?
The reason for recalculation may be certain conditions:
- Reaching 80 years of age;
- The emergence of health-related restrictions on labor opportunities;
- Having work experience in the North;
- Loss of a breadwinner affecting income;
- The appearance or increase in the number of persons in custody.
In one of these cases, the citizen submits an application explaining the situation and indicating the reason. A number of documents are also required to prove the veracity of the words. The cause of old age is considered immediately after reaching 80 years of age. If the application is based on negative changes in health, then confirmation by a medical commission is required. The main reason is a change in disability category.
There are cases when the degree of disability decreases, which also affects the amount of payments. The amount of funds is reduced after the first day of the month in which the decision came into force. You can try to challenge the verdicts that affect the amount, but the result is rarely achieved. Thus, it will become a waste of time and nerves.
The situation of pensioners in Russia and the world
01/12/2018 The Ministry of Labor and Social Protection of the Russian Federation informed citizens about the new procedure for forming their pension rights.
The main factors on which the amount of the pension directly depends are:
- salary size - the higher it is, the larger the pension payment;
- length of work experience – increases the number of IPC (pension points) every year;
- retirement age – the longer a person works without applying for a pension, the more significantly his pension provision will increase.
| Main settings | For 2020 | Was in 2020 | |
| Minimum experience | MST | 9 years | 8 years |
| Number of pension points | IPC | 13.8 | 11.4 |
| Pension point cost | SPK | RUB 81.49 | RUB 78.58 |
| Fixed payment | FV | RUB 4,982.90 | 4805.11 rub. |
The amount of state social security by age is determined by the following main factors:
- length of work experience;
- the number of pension points accumulated during the length of service;
- age of retirement (the state provides bonuses for later completion of work).
The maximum length of service for calculating a pension in Russia for early retirement is now 45 years for men and 40 for women.
- judges;
- test pilots and astronauts;
- senior managers of commercial structures;
- disabled people of the Great Patriotic War;
- prosecutors;
- employees of the administration of the Russian Federation and other government agencies.
Expert opinion
Elena Smirnova
Pension lawyer, ready to answer your questions.
Ask me a question
It is not possible to provide exact figures for the maximum old-age pension in Russia, since a significant part of them are state or commercial secrets.
| Subject of the Federation, region | Average amount of payments, thousand rubles. | Living wage for the region, thousand rubles. |
| Murmansk | 15,1 | 8,84 |
| Komi | 14,678 | 7 798 |
| Arkhangelskaya | 13,858 | 8,603 |
| Khabarovsk region | 13,331 | 8,012 |
| Tomsk | 12,502 | 6,298 |
| Moscow | 12,4 | 8,502 |
| Saint Petersburg | 12,4 | 6,258 |
| Irkutsk | 12,147 | 6,726 |
| Krasnoyarsk region | 11,9 | 6,235 |
| Vologda | 11,812 | 6,316 |
| Tula | 11,68 | 6,31 |
| Nizhny Novgorod | 11,6 | 5,592 |
| Tatarstan | 11,6 | 6,621 |
| Primorsky Krai | 11,5 | 7 818 |
| Novosibirsk | 11,5 | 6,681 |
| Kemerovo | 11,432 | 6,017 |
| Astrakhan | 11,4 | 5,382 |
| Sverdlovskaya | 11,4 | 6,354 |
| Yaroslavskaya | 11,4 | 6,252 |
| Chelyabinsk | 11,279 | 6,215 |
| Samara | 11,275 | 5,941 |
| Belgorodskaya | 11,2 | 5,76 |
| Kaluzhskaya | 11,2 | 6,13 |
| Tverskaya | 11,2 | 6,225 |
| Tyumen | 11,181 | 5,882 |
| Perm region | 11,01 | 6,136 |
| Pskovskaya | 10,97 | 6,344 |
| Bashkiria | 10,87 | 6,07 |
| Omsk | 10,839 | 5,932 |
| Ulyanovskaya | 10,645 | 6,01 |
| Ivanovskaya | 10,61 | 6,078 |
| Rostov | 10,61 | 6,35 |
| Lipetskaya | 10,46 | 6,1 |
| Udmurtia | 10,368 | 5,73 |
| Saratovskaya | 10,3 | 5,42 |
| Tambovskaya | 10,3 | 4,802 |
| Bryansk | 10,208 | 5,648 |
| Voronezh | 10,053 | 6,039 |
| Krasnodar region | 10,037 | 6,312 |
| Kaliningradskaya | 9 448 | 6,354 |
Expert opinion
Elena Smirnova
Pension lawyer, ready to answer your questions.
Ask me a question
From the table it is obvious that the size of the average provision from region to region can differ by almost two times, and the value of the lower bar
living wage
- no more than one and a half.
The amount of future benefits can be increased until the end of your working life. The following options exist for this:
- getting the highest possible salary;
- accumulation of the maximum possible number of pension points;
- old age retirement as late as possible;
- investment of pension savings in an effective and reliable non-state pension fund.
Important! High wages will allow an increase in old-age social benefits only if they were paid according to the “white” scheme. Various tax avoidance schemes have a negative impact on the amount of pension payments.
When formulating pension payments, the following factors are taken into account:
- work experience;
- valorization amount;
- estimated pension capital;
- the amount of insurance contribution by the employer.
You can add points to the amount of work experience that depend on this value. By law, the pension amount is calculated by multiplying the number of points by the price of one and adding other values (increasing factor, fixed payments).
Until 2020, pension amounts were calculated as follows: the insurance portion was divided by the cost of the point.
It is currently impossible to calculate the maximum amount of an old-age pension. It will depend on many circumstances - retirement age, length of service, salary, pension contributions, etc.
There are three ways to increase your future pension.
Receiving the maximum contributory salary. From 2021, you can get a maximum of 10 points per year worked.
If in 2021 the maximum base for calculating insurance premiums is the same as now, in order to gain 10 pension points, you need to receive 95,833 R or more. Insurance premiums from these salaries will allow you to gain the maximum IPC.
Search for additional future income. Money can be deposited in a bank, opened an IIS, or invested in real estate. Each of these tools will bring additional income in the future. T—J has already written about how to save for old age if you don’t believe in retirement.
Increasing pensions for entrepreneurs is a particularly pressing issue. For paying fixed insurance premiums, they are awarded a little more than 1 point, because of this, individual entrepreneurs receive a minimum pension. Therefore, we advise entrepreneurs to especially carefully read the selection of T-J about pensions.
What is the basic pension in 2020?
Legislative act number 400 establishes a fixed salary throughout the country. Since February 1 of this year, the amount of funds has been changed. The reason was inflation a year ago, the level of which reached 5.4%. Consequently, it was precisely this percentage that was used to recalculate salaries.
“Currently, the minimum base part is 4,805.11 rubles. Just 16 years ago the amount was some 450 rubles per month, which was not enough even at that time. However, every year the pension went through indexation, reaching this number. Of course, the size is small, but, again, there is hope for indexing, although this happens in small steps.”
The basic share in old age is guaranteed to all citizens of the Russian Federation who have worked for more than five years at an official place of work.
“The important point is that the size of the pension benefit cannot be lower than the subsistence standard in the place of residence. For example, in Moscow the minimum amount for living is 10,670 rubles. In St. Petersburg, the minimum is about a thousand lower - 9617.90 rubles.”
Accrual of pension points for individual entrepreneurs
The pension fund is a rather callous and stingy organization that is not interested in large pensions. If a person is not legally savvy, then perhaps he will receive less due to his ignorance of various benefits and allowances. In addition, there may be various delays when registering pension payments.
Therefore, it is recommended to start processing the payment long before the official deadline, which is 1 month. At least a year before.
| Year | Minimum IPC required |
| 2015 | 6,6 |
| 2016 | 9 |
| 2017 | 11,4 |
| 2018 | 13,8 |
| 2019 | 16,2 |
| 2020 | 18,6 |
| 2021 | 21 |
| 2022 | 23,4 |
| 2023 | 25,8 |
| 2024 | 22,4 |
| 2025 | 30 |
Benefit amounts for different categories of citizens for 2020
Disabled people of the first group receive a fixed salary, the amount of which is 9610.22 rubles. Citizens of the second category are guaranteed a minimum basic threshold of 4805.11 rubles. People with the third disability group are entitled to half the minimum, which is 2,402 rubles. Additional allowances are possible if disability is not the only condition for receiving a pension. For example, in the past a person worked in the northern region. In such cases, the amount is calculated individually.
Persons with incapacitated persons in their care receive a salary depending on a number of conditions. The main one is quantity. Of course, proof of disability is required. This does not only apply to children, because the situation is obvious due to age. Dependents can be either fully or partially supported.
Payments to people who worked in the northern regions range from 7,207 rubles to a maximum base salary of 21,622.98 rubles. Individual entrepreneurs can apply for a pension if, during the period of their working activity, they transferred contributions to the Russian Pension Fund. Thus, this period of contributions is counted as work experience. Therefore, citizens are guaranteed the same old-age pension as other categories.
Officials can even receive two salaries for their activities. The first salary is based on length of service, and the second is based on the insurance component. There is no base salary in this case. The size of the pension depends on the salary during the working period, and officials earn enough to ensure a decent old age at the expense of the insurance portion.
What do working pensioners expect?
Article 16 of federal law number 400 states that working citizens are entitled to a minimum basic salary. However, annual indexing is not carried out, which is based on decree number 385. Indexation will become available after leaving work.
Basic pensions for ex-military personnel
Separately, it is worth noting military personnel whose pension is calculated in a slightly different way. There are special regulations for this:
- Decree 4468-1 of February 12, 1993;
- Law number 941, published in the same year, but already in September.
The military pension currently amounts to 72.23% of the current salary of active military personnel. However, even in this category there is a minimum threshold for the basic benefit, equal to only 3,771 rubles.
Increases are possible for personal achievements during performance, for length of service, for combat wounds, for service during the war period, as well as for the number of disabled persons on payroll.
Average Russian pension
According to the pension fund, the average Russian pension due to a citizen by age is about 13,900 rubles in 2020. As analysts have calculated, this amount corresponds to 40% of the average salary in Russia. Social pension, on average, is close to the amount of 8,300 rubles. Disabled children receiving a pension due to their disability currently have 8,790 rubles. The average pension for citizens who were injured in military service, resulting in them becoming disabled, is 30,700 rubles.
It would not be amiss to note that among the countries of the former Soviet Union, Russian pensioners are the wealthiest. In terms of pension provision, only the Baltic states can compare with Russia. However, in the Baltic region the cost of utilities for pensioners is significantly higher than for Russian pensioners. High utility costs significantly reduce the income of Baltic pensioners.
Analysis of pension policy makes it possible to make a comforting forecast regarding the reduction of the crisis in this area of financial relations. The policy pursued by the Russian Government, which provides for the indexation of pensions twice a year in February and April, makes it possible to effectively combat inflation of pension payments.
At what age is the old age pension available today?
“As of 2020, the age remains the same, which is 55 years for women and 60 years for men.”
You can also receive your pension salary early if there are reasons for this. For example, the already mentioned northern experience or work in hazardous industries. If we’re talking about age, we can’t help but mention that in August of this year a new pension reform was released, raising the threshold already in 2020.
The government plans to shift the age over the next 10-15 years to 65 for men and 63 for women. Of course, all this caused a lot of completely justified human discontent, given the fact that in Russia the average life expectancy is not that long.
#Basic pension #Pension #Pension 2020 #Pension in Russia #Increasing the retirement age #Amount of the basic pension #Amount of pension #Increasing the retirement age
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