Pensions — probably the hottest topic in modern Russia. Innumerable disputes about increase pension payments or not, will freeze pension savings, or, conversely, increase the retirement age, or leave as is… In the pre-election period, these discussions are particularly acute. We tried to understand the clever formulas, pension officials.
Authorities from 1 January, has promised to index pensions by 3.7%. However, in monetary terms, this increase amounts to only 500 RUB. In the result, the average pension of a little more than 14 thousand.
And it’s not just that the same amount per month except that you can survive. Our older compatriots do not realize how generally formed their pension. In this matter the imagination of the Russian government manifests itself in all its glory.
Now there are two groups of pensions: insurance that receive more than 40 million Russians, and on public welfare — recipients, there are about 4 million people.
The most common type of pension — old-age. It received more than 36 million people. In 2015 it is formed in the individual pension coefficients, or as they say in common parlance — in pension points. Moreover, as noted in the Pension Fund of Russia (PFR), all formed through 2015 without reducing the rights are translated into points and also count toward a pension.
Assigned insurance old-age pension for men reaching 60 years of age and women 55. However, age is not the only condition for payment. You need to gain some work experience. And every year, this threshold increases. Those who apply for a pension in 2018, the experience must be at least 9 years, and from 2024 — for at least 15 years.
Another condition is the minimum amount of pension points. 2025 every citizen applying for a pension, shall be “present” at least 30 points. As explained “MK” FIU, “the number of points depends on the premiums that your employer pays for you in the Pension Fund, and the duration of insurance”. And to know how many points you can earn for the year is very simple — on the main page of the website of the FIU. Enter your monthly salary (of course, legal) before deduction of personal income tax and receive a number of points that you this salary you can earn in a year. The higher salary and the longer the experience, the more points. The maximum number of pension points that can be earned per year in 2018, and 8.7, and from 2021 on will 10.
Focus, invented at the time by officials, is that each score has its own price, which also varies from year to year. In fact, this value depends on the capabilities of the government to ensure the pension system in a particular year. At the exit of a person to retire all points earned are multiplied by the cost of one point per year pension. To this amount is added the so-called fixed payment, which also varies from year to year. It’s the size of your insurance old-age pension.
For example, a citizen is retiring this year and has accumulated a pension of 120 points. Multiply 120 by 81,49 RUB. (cost of points in 2018) and to the resulting add 4982,9 RUB (the size of the fixed payment in 2018). Finally we get a 14 762 virtually any monthly pension of our fictional character.
However, Russians have the opportunity to increase pension. For this it is necessary to delay access. If you postpone retirement at least a year, the payout will be higher due to premium ratios.
It is also important to note that insurance old-age pension is formed not only on account of insurance periods, when the person officially works for him to pay the premiums, but at the expense of non-contributory periods — when it doesn’t work, but his pension rights is still emerging. Such periods include, for example, leave to care for a child under 1.5 years, proper care for the disabled and elderly, the service in army on an appeal. As periods of insurance coverage, the uninsured are counted in the length for them are given pension points.
But experts some points in the formation of old-age pensions raise questions. In particular, what do you do if, for example, he did not have before the minimum pensionable service months? “He worked, worked, received the wages of white, were payments for eight and a half years, after which he wants to retire upon reaching retirement age. And his answer is that the rights he has. Back then, when a failure in the calculation of old-age pension to him all the deductions that were made to the Pension Fund. At least some fair compensation, otherwise similar to a con and rip-off people”, — said the Director of the Institute of contemporary Economics Nikita Isaev.
Not by chance the last time and then POPs up the controversial subject of refusals to appointment of insurance old-age pension. As explained in the FIU, the failures were and always will be, because to assign any kind of pension in Russia (and only by the FIUs 15) must be met certain conditions. If they are not met, the pension is not granted, and people are naturally unhappy.
Meanwhile, according to the FIU, now the average experience of citizens who apply for assignment of pension is 35 years. That is, even at low wages during this period, you can earn points in excess of the minimum required.
As a rule, problems arise from the Russians, who do not work officially. “Every year, FIU assigns the 1.8–1.9 million insurance old-age pension. Of this amount, the denial of arrears of pension credits or seniority is about 1.2% of them due to lack of pension points is only 0.4% (8.3 thousand of people all over the country),” according to the FIU.
But do not underestimate the scale of the problem, warns Isaev: according to him, millions of people simply do not seek old age pensions, seeing the complexity and intricacy of the system of assessment. “The pension accrual the most vulnerable part of the population — the elderly — does not look like a transparent system of social protection and care, and, unfortunately, as another pyramid scheme. Here not so much about justice — about the advisability of sometimes can not speak”, — the expert believes.
photo: Ivan Skryplev
In search of Paradise
As practice shows, the attitude towards older citizens shows the level of maturity of the state. Each country addresses social issues in their own way, building its own pension system.
For example, Germany is a country with one of the most powerful economies in the world, offers its senior citizens all conditions for a dignified old age. To the Germans can retire in 67 years — and both women and men. However, to leave work before the specified threshold is not prohibited. Such a scenario is possible when a pensioner will pay from personal savings of a certain amount to compensate for forgone pension Fund assets.
It is clear that the amount of the pension of the German population has no reason to complain. On average, retirees receive of 1290 euros per month. However, the difference in the development of the East and West of the country still not fully overcome to this day. As a consequence, the size of the average pension in East Germany is about 1 thousand euros per month.
Not far behind the Germans and older Americans, who receive an average of $1100-1200 per month. Here, men retire at 67 and women at 65. But if a citizen wants to retire prematurely, he should file a motion stating the reason. However, he must understand that in this case, his pension will be 70% of the amount he would have received, after retiring in due time. And to get 100 percent of the pension to him in the future opportunities will not be provided. By the way, after reaching the retirement age continue to work 30% of Americans. The size of deductions to the state Fund is 15% of wages. Half of them paid by the employee and the employer.
Close to perfection is considered the pension system in the UK. There is a strong gender leaves jobs at 65 and ladies at 60 or 65 years. But if the British have expressed a desire to work hard for every additional year he gets a bonus to their pensions. The basic pension of the citizen who has retired before 6 April 2016, reaches 119.3 pound a week. If it happened later specified date, the amount of the payments will average 155,65 pound a week ($865). To receive the basic pension, the Briton enough to work 10 years. And every subsequent completed year of service increases the pension amount by 4.44 pound per week.
But, of course, many Brits choose the accumulation of pensions in private funds or insurance companies, paying back 5-8 percent of income.
Among the countries in which it is best to age also applies for Denmark, where the highest accrued pension in the world. The average monthly payment to an elderly Dane is $2800. And despite the fact that the average life expectancy in the Scandinavian countries reaches 80 years of age, a retired local residents come in 65-67 years. In addition to the state pension, the Danes often have savings in the NPF. In the end, when they retire, their pensions can be even more. As experts explain, therefore, the government of Denmark to motivate people to stay longer in the labour market. The fact that the content of older Danes in nursing homes paid by the state.
But if Denmark is called Paradise for retirees, something about China so to say. Despite the rapid economic growth of this country in the twenty-first century, there still remain unsolved problems in the pension system. Blame birth control in China, which nation is now considered aging. As a result, the payment of pensions, accounting for 40% of the budget of the country. Moreover, to ensure a decent old age, the Chinese employee contributes to the pension Fund of the state 11% of their salary, of which 4% will be charged automatically and 7% paid by the employer. However, this is still insufficient for the maintenance of a huge army of elderly Chinese. The average wage in China is less than $100.
Photo: social networks
Save up for a decent old age
Pensions Russians, of course, higher Chinese, but not much: at the current rate of 2-2. 5 times. For a decent life in old age is not enough. The government Hoped that in some magical way will dramatically increase this figure, is not necessary. In any case, it has advised its nationals to independently save for their future life. “We are talking about the fact that the people working should also care about their future,” said recently the Minister of Finance of Russia Anton Siluanov. This means that Russia may go along way when the government guarantees people certain basic pension low, and the rest of “reserve” for a decent retirement will be in the hands of the citizen.
Therefore, there is nothing else like now to start to take care of their nest egg for old age. First and foremost is to get into the habit of saving 5% of their revenues in foreign currency. In particular, specialist of the Department of analysts Analytics Online Nicholas Kotov recommends to prefer Swiss franc. “His course is the least volatile, interest rates in this country more stable, that’s why the Swiss franc is called a “refuge ” currency” — the expert recommends.
The second method to save and increase their savings Kotov calls investments in the shares of most major corporations. “An additional guarantee of reliability is the fact that a shareholder of some of the largest companies in the state, and it is not going to invest money it is unclear what”, — the analyst continues.
Another option to increase their capital — to have an individual investment account (IIA) with a major Bank. “Buy 10-year or 15-year government bonds in the investment account, the yield there from 7.5% and above. Plus the guarantee of the Ministry of Finance for the bonds are the same as in the Agency of Deposit insurance,” recommends chef-analyst GK TeleTrade Peter Pushkarev.
According to the Director of analytical Department “alpha Forex” Andrew Dirgin, the ISS has many advantages. In particular, the bill has very wide opportunities for investment. In addition, for user provides tax incentives — refundable 13% of the amount invested. Among the advantages also the impossibility of withdrawal of funds by someone unauthorized. Make it have the right only man himself or his heirs.
However, there are limitations. “You can’t put more than 1 million virtually any. per year, to more than 52 thousand RUB. on the deposited amount in the form of a tax deduction (if the tax base), and hold there money you need at least three tax periods (1 year — from 1 January to 31 December). Otherwise, you may lose the right to a tax credit. I am glad that the revenues to the account are, in any case, and the question is where to invest,” explains Dargin.
However, as practice shows, ordinary Russians are still, to this kind of investment and are wary of the old-fashioned keep your hard earned on Bank deposits. However, resorting even to such a proven and conservative way to save money, experts suggest a few simple rules. “If you are a person well-off, the funds on Deposit should be divided into the amount of 1.4 million virtually any. Thus you can protect your savings in case of bankruptcy of the credit institution: it is on this amount is one hundred percent refund of the Deposit. In General, the deposits — the most conservative way to increase savings, but also very quiet, which gives a yield of 6-7%,” — says the first Vice-President of “OPORA Russia” Paul Segal.
The expert recommends that the Russians to diversify their funds. “30% of savings can be invested in investments in the financial market because Deposit rates now tend to decrease because of high oil prices and low inflation. Barring any external shocks, we would expect a further reduction of the refinancing rate. This means that after it goes down the rates on Bank deposits,” warns Siegel.
At the same time, those who are hoping to save up for old age comes to the financial market expert advises to moderate appetites and to evaluate risks. “People who are chasing big returns, must have nerves of steel enough to remember the rush of digital currency. Many months of growth in the beginning of last week turned into a collapse, and people lost up to 50% invested in bitcoins of funds” — emphasizes Segal.
Therefore, as noted by Peter Pushkarev, currently the best investment are children. “In their health, development, skills, education need to invest. To children in the future to earn good money and were able to help their parents financially when they become retirees,” — said the expert.
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