Knowing how to calculate your future pension is important because this information will give you a clear picture of your financial future after an active working period. At the same time, within the framework of this topic there are many nuances unknown to the average person.
Basic information
Before studying the calculation algorithm, it makes sense to understand what a labor pension is. One of the simplest explanations would be the following: this is financial compensation for wages and other payments to those citizens who were insured and, due to various factors, including age, are no longer able to provide for themselves.
There are three types of labor pensions that are worth knowing about:
TP due to disability;
TP by age (old age);
TP associated with the loss of a breadwinner.
The financing of pension payments is based on insurance contributions from employers. Women who have reached the age of 55 and men who have overcome the 60-year mark can count on retirement. These are fairly clear rules that give a simple answer to the question - what retirement age is currently relevant in the Russian Federation. But even if a citizen has, so to speak, overworked, this will not go unnoticed.
At the moment, the pension fund uses a rather complex formula to calculate payments, but this is explained by the desire to take into account various factors that may affect the amount of payments. But, in general, when trying to understand how to calculate, you need to take into account the key indicators that are used in the calculation. We are talking about the following elements:
- Warhead (base part). It is established by government agencies, taking into account the presence of dependent family members, restrictions within the labor process and age.
-NC (cumulative part of the old-age labor pension). This part is formed from income from investing pension funds in the Pension Fund of the Russian Federation and voluntary insurance contributions.
- SCH (insurance part of the pension). Directly depends on the pension capital, which, in turn, consists of two parts: the amount of insurance contributions after 2002 and the estimated pension capital before this period.
In general, the calculation uses two blocks of information about a citizen - before and after the pension reform. And ordinary people who want to understand how to calculate their future pension need to take this fact into account.
What is important to consider before calculating
Those who continue to work while retired can count on the fact that payments in their case will not be canceled and, moreover, will gradually increase.
If a citizen is preparing to end his working period and worked a lot before the reform, then his experience and length of service will be recalculated into points without any financial damage.
There are people whose age is already close to retirement, but they have not officially worked for 15 years. This category of citizens, like people who have no work experience at all, will be able to receive exclusively a social pension.
It is important to know that actively working two jobs will not bring tangible benefits. This is explained by the following fact: the total number of points that will be awarded will actually remain at the level of citizens receiving an official salary from one employer.
When thinking about how to calculate your pension yourself, it is worth remembering that an illiterate distribution of interest between funded and insurance pensions can lead to certain losses. The size of payments will be larger only if the savings category is a priority.
Well, it is quite obvious that the so-called salary in an envelope significantly worsens the pension prospects, since it significantly reduces the amount of contributions.
About the points system and key changes
It is important to be aware that some changes have been made to the accrual system, but all of them relate only to old-age payments. In this area, those parts that made up one whole are now independent, separate elements of calculation. We are talking about insurance and labor pensions. It is the insurance form that is determined by taking into account points. To accumulate the required amount, you need to make regular contributions to the insurance pension category. But it is important to take into account the fact that such changes are relevant for citizens whose working activity began in 2015. Those who worked actively long before this period may not worry about changes in the system.
But for young people, this will mean that in a process such as pension calculation, the average salary will not become the only determining factor. In general, in order to understand what kind of pension you can count on, you need to take into account three components:
Length of work experience;
Retirement date;
Amount of deductions.
If for the previous generation it was important only to have contributions in the required amount and at least 5 years of official work experience, for young people a more complex system of requirements is relevant.
First of all, the period of required labor activity has increased; every year it will grow until it reaches 15 years. This moment should come in 2025.
Now - more specifically about the requirements for those wishing to receive a retirement pension:
First of all, you need to reach retirement age. For women this is 55 years old, while men will have to work until 60.
Minimum work experience is required. We are talking about a period from 6 to 15 years.
The final condition is to have the required number of points, which is 30 or more.
Points are awarded automatically. In this case, such indicators as the amount of contributions, length of service and the age at which a particular citizen will retire will be taken into account.
The formula for calculating a pension, relevant for young people, should include all these indicators. If there are not enough points or the length of service is too short, then retirement will be delayed by 5 years. And in this case, the form of pension - social or labor - will not be of key importance.
Those who are actually ending their career or are ready to stop working due to approaching retirement age should not worry. Although the indicators will be recalculated, they will either have no effect on the size of the pension or will lead to its increase.
Opportunity to receive bonuses
According to current legislation, citizens will be able to receive additional points under certain conditions. Such bonuses are awarded in the following cases:
When caring for disabled children. For each year of such care, 1.8 points are awarded.
When a citizen undergoes military service in the Russian Army. Here, 1.8 points will also be counted for each year of service.
Women on maternity leave can also count on bonuses. In such a situation, the accrual scheme changes slightly. The first year of maternity leave brings the traditional 1.8 points. The next 365 days provide an opportunity to get 3.6 points. The third year of parental leave raises the mark to 5.4 points. If the duration of the maternity leave exceeds a three-year period, then for each subsequent year the state will award 5.4 points.
Bonuses will also be available to those caring for a relative whose age exceeds 80 years. Here the charges remain at the standard level (1.8).
Continuing the theme of balls, we need to once again pay attention to the importance of work experience. As was written above, under the old system it was not a key indicator; the size of contributions played a much larger role. Now the situation has changed: when forming such a regular monthly benefit as a pension, additional payment for length of service will have one of the key values. That is, those who worked for a long time will have their long work history credited, which will have a direct impact on the size of their pension.
If we talk about how points are calculated, then you need to pay attention to the following formula:
(IPO in year N/NPO in year N) * 10.
where IPO should be understood as a citizen’s individual contributions to the pension fund, NPO means the standard of contributions, and the letter N is used to designate a specific year.
Calculation scheme
When talking about future payments to people who are close to retirement age, it is worth using a different scheme than in the case of young people who still have a lot of work to do.
If a citizen of the Russian Federation began his working activity before January 1, 2002, then the following formula for calculating his pension is relevant for him:
P=FBR+SC1+SC2+SV.
By FBI we need to understand the fixed basic pension amount that is established by the state.
SCH1 is the insurance part of the pension, for the calculation of which insurance contributions made by the employer until 2002 are used.
SC2 - the insurance part, consisting of contributions after 2002.
The amount of valorization is determined as a SV and depends on the number of full years of service.
If we describe the calculation algorithm in stages, the picture of the process will turn out to be somewhat complex.
So, first of all, the length of service coefficient is taken into account, which will have a direct impact on the amount of the pension in the end. It is calculated as follows: 0.55 units are assigned to men for 25 years of service before the reform (2002) and to women for a 20-year period. If this limit is exceeded, 0.01 coefficient units are added for each year, and this indicator cannot exceed 0.20. So, within the framework of the topic “how to calculate a future pension,” you initially need to pay attention to the length of service.
Next, the ratio of the salary of the future pensioner and the average earnings in the country for 2000 - 2001 is calculated. Alternatively, data from any 60 months of uninterrupted employment may be used.
In this case, the ratio should not exceed the level of 1.2. If we are talking about residents of the far north, then this indicator will fluctuate around 1.4-1.9 units. This largely depends on the salary ratio centrally established in a particular region.
At the next stage, the resulting average earnings are multiplied by a coefficient and an amount of 1,671 rubles. The last figure is the average monthly salary in the country for the 3rd quarter of 2001, which was approved for calculations. The result is the size of the pension, recalculated in accordance with the new legislation.
Preferential pension
In this case, the question “how to calculate your pension yourself?” is also relevant. But in order for independent calculations to be correct, you need to perform several sequential actions.
First, you should get information about your position - whether it falls into the category of preferential ones. You can obtain this information on the Pension Fund website, which contains a list of professions that allow specialists to retire earlier than other citizens.
If the desired profession was found on the list, then further actions will be limited to determining specific periods of work that are counted as length of service. At this stage, it is important to pay attention to both length of service and the institution within whose walls you had to work, since there is also a list of enterprises related to the preferential category.
And having sorted out the data about the former employer, you need to check whether the information received complies with the requirements of current legislation. Next, it’s worth finding out how many points are guaranteed by the sum of years worked, taking into account the rates of pension contributions. This information can also be found in the PF.
The resulting number of points must be multiplied by the pension coefficient, and the result will be the size of the preferential pension.
Using the electronic service
For those who want to take the simple route, it makes sense to pay attention to the pension calculator, which is located on the official website of the Pension Fund of the Russian Federation. This program will greatly simplify the process of calculating the necessary indicators.
This service takes into account all current inputs that may affect the size of the pension and the time of retirement. All you need to do is fill in all the fields provided, which is not a difficult task.
The pension calculator allows you to get the most objective picture. When performing calculations, he takes into account, for example, military service. And although this period is not defined as length of service, a citizen of the Russian Federation receives 1.8 points for it.
All years devoted to official work are taken into account. The exception in this case is maternity leave and maternity leave. By the way, points for parental leave are also taken into account.
It is also worth noting that a citizen of the Russian Federation can receive a pension supplement of 25% if he has lived in a rural area and worked in the agricultural sector for the last 30 years.
Many are interested in the fact how the work experience acquired during the Soviet era will be taken into account, and whether it will have any significance at all. Without this information, it is difficult to understand how to calculate a pension for a woman born in 1961 and other citizens who began working during the Soviet era.
First of all, it should be noted that the experience that was obtained before 2002, including before the formation of the Russian Federation, is taken into account. If before the reform the number of working years reached 27, then a coefficient will be calculated for them. Its size will consist of two parts: 0.55 for 20 years of experience before 2002 and 0.01 for every 12 months in excess of the specified norm, which will be 0.07 over a seven-year period. As a result, the coefficient into which the salary will be converted will be 1.2.
But, unfortunately, for many citizens, the Soviet salary is not actually taken into account when calculating pensions. Instead, the average salary in the country is taken into account in the period from 2000 to 2001, which was equal to 1,647 rubles. The Soviet salary is subtracted in order to accurately determine the pension capital. Deductions and length of service recorded after the reform will be added to these indicators.
On average, a citizen who worked for 35 years and received a salary of 20,000 rubles. will be able to count on a pension amounting to 35% of its size, that is, a little more than 7,000 rubles. This perhaps not entirely rosy example of calculating pensions will be relevant for those citizens who were already actively working during the Soviet era. The only plus is that when working at retirement age, payments are maintained.
Military personnel
The process of determining the pension amount for this category of citizens has its own characteristics that must be taken into account. Therefore, when understanding how to calculate a military pension, you need to know that the pension calculator in this case will take into account the following indicators:
-Length of service. The duration of work activity has a direct impact on the amount of payments. Only due to this indicator, monetary subsidies to the military can be increased by 50%. Moreover, each irregular year brings another 3% increase.
- Disability resulting from any illness. In this case, the premium can reach 75%.
- Receiving disability while serving in the Russian army. In such circumstances, the pension can be increased by a maximum of 130%, but exactly what the amount of the increase will be depends on the group obtained after a medical examination.
Speaking about how to calculate the pension of the Ministry of Internal Affairs, it is worth noting that it is formed according to virtually the same scheme as for the military. Here, the calculation is also based on factors such as salary for a special rank and position that influence the increase in the level of payments.
How are things going with IP?
To qualify, you must have at least 15 years of experience. Here it is important to clarify the fact that the length of service is defined as those periods when contributions were made to the Pension Fund, and it does not really matter whether active business activity was carried out at that moment or not.
In this case, individual entrepreneurs will be counted in the length of service for the same periods as in the case of other citizens (maternity leave, time in the army, caring for the disabled, etc.).
As for you, you will need at least 30 of them to retire.
Results
So, understanding how to calculate an old-age pension, we can draw the following conclusion: the state aims to objectively formulate the amount of payments to different categories of citizens. This is why there are so many inputs in the calculation formula. As for doing the calculation yourself, the fastest way to complete this task is to use the pension calculator on the Pension Fund website.
The pension rights of citizens are formed in individual pension coefficients. All previously formed pension rights were converted without reduction into pension coefficients and are taken into account when assigning an insurance pension.
The conditions for the emergence of the right to an old-age insurance pension under general conditions are:
- reaching the age of 65 years - for men, 60 years - for women (taking into account the transitional provisions provided for in Appendix 6 to Law No. 400-FZ). Certain categories of citizens have the right to receive an old-age insurance pension early;
- for persons holding government positions in the Russian Federation and government positions in constituent entities of the Russian Federation held on a permanent basis, municipal positions held on a permanent basis, positions in the state civil service of the Russian Federation and municipal service positions - the age specified in Appendix 5 to Law No. 400-FZ . Already in 2017, the process of raising the retirement age for civil servants began six months a year to 65 years (men) and 63 years (women). From January 1, 2021, the step to increase the retirement age will increase - one year per year. Thus, the retirement age for civil servants is brought into line with the proposal for the rate of increase in the generally established age for everyone.
Moreover, if such persons have insurance experience of at least 42 and 37 years (men and women, respectively), an old-age insurance pension can be assigned to them 24 months before reaching the specified age, but not earlier than reaching the age of 60 and 55 years (men and women, respectively ).
- having at least an insurance period15 years (from 2024) taking into account the transitional provisions of Art. 35 of the Law of December 28, 2013 No. 400-FZ;
- availability of a minimum amount of pension coefficients -at least 30 (from 2025) taking into account the transitional provisions of Art. 35 of the Law of December 28, 2013 No. 400-FZ.
Citizens who are specified in Part 1 of Article 8, paragraphs 19 - 21 of Part 1 of Article 30, paragraph 6 of Part 1 of Article 32 of Law N 400-FZ "On Insurance Pensions" and who, in the period from January 1, 2019 to December 31, 2020, have achieved age giving the right to an old-age insurance pension (including its early assignment) in accordance with the legislation of the Russian Federation in force before January 1, 2019, or they will have acquired experience in the relevant types of work required for the early assignment of a pension, an old-age insurance pension may be appointed before reaching the age or the onset of the deadlines provided, respectively, by Appendices 6 and 7 to the said Federal Law, but no more than six months before reaching such an age or the onset of such deadlines.
The number of pension coefficients depends on accrued and paid insurance contributions to the compulsory pension insurance system and the length of insurance (work) experience.
For each year of a citizen’s labor activity, subject to the accrual of insurance contributions for compulsory pension insurance by employers or personally paid by him/her, pension rights are formed in the form of pension coefficients.
The maximum number of pension coefficients per year from 2021 is 10, in 2020 - 9.57.
How many pension coefficients
can be charged to you for 2020?
Enter your monthly amount
wages before personal income tax:
Error! Enter a salary higher than the minimum wage in the Russian Federation in 2020 - 12,130 rubles.
Calculation results
Number of pension points
per year: 9.13
The pension option in the compulsory pension insurance system affects the calculation of annual pension coefficients. When forming only an insurance pension, the maximum number of annual pension coefficients is 10, since all insurance contributions are directed towards the formation of an insurance pension. When choosing to form both an insurance and funded pension at the same time, the maximum number of annual pension coefficients is 6.25.
Citizens born in 1967 and younger who, before December 31, 2015, chose to form an insurance and funded pension in the compulsory pension system can at any time refuse to form a funded pension and direct 6% of insurance contributions to form only an insurance pension.
Also, citizens born in 1967 and younger, in whose favor insurance contributions for compulsory pension insurance will begin to be accrued by the employer for the first time after January 1, 2014, are given the opportunity to choose a pension provision option (form only an insurance pension or form both an insurance pension and a funded pension) within five years from the date of first accrual of insurance premiums. If a citizen has not reached the age of 23, the specified period is extended until the end of the year in which he turns 23.
When choosing a pension option, you should take into account that the insurance pension is guaranteed to be increased by the state through annual indexation. The funded pension funds are invested in the financial market by the citizen’s chosen NPF or management company. The profitability of pension savings depends on the results of their investment, that is, there may be a loss from their investment. In this case, only the amount of insurance premiums paid is guaranteed for payment. Pension savings are not indexed.
All citizens born in 1966 and older have a pension option - the formation of only an insurance pension.
Obtaining the right to an insurance pension depends on the year the insurance pension was assigned
|
Minimum insurance period |
Minimum amount of individual pension coefficients |
Maximum value of the annual individual pension coefficient |
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in case of refusal to form a funded pension |
when forming a funded pension |
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2025 and later |
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*From 2015 to 2020, regardless of the choice of pension option in the compulsory pension system, all citizens will only have pension rights. In this regard, the maximum value of the annual individual pension coefficient is the same for any pension formation option.
The old-age insurance pension is calculated using the formula:
INSURANCE PENSION = THE SUM OF YOUR PENSION COEFFICIENTS* COST OF THE PENSION COEFFICIENT as of the date of pension + FIXED PAYMENT
SP = IPC * SIPC + FV , Where:
- JV - insurance pension
- IPC - this is the sum of all pension coefficients accrued on the date of assignment of an insurance pension to a citizen
- SIPC - the value of the pension coefficient on the date of assignment of the insurance pension.
When assigning a pension from 01/01/2020 = 93.00 rubles. Indexed annually by the state.
- FV - fixed payment.
Thus, the calculation of the insurance pension in 2020 is carried out according to the formula:
SP = IPK * 93.00 + 5686.25
Also, the amount of your pension coefficients (IPC) is significantly increased by applying for an old-age insurance pension for the first time (including ahead of schedule) after the right to it arises. For each year of later application for a pension, the insurance pension will increase by the corresponding premium coefficients.
For example, if you apply for a pension 5 years after reaching retirement age, the fixed payment will increase by 36%, and the sum of your individual pension coefficients will increase by 45%; and if after 10 years, then the fixed payment will increase by 2.11 times, and the sum of your individual pension coefficients by 2.32 times.
Since January 2015, another conversion of pension rights has taken place, now into pension points. For the first time since the Soviet period, the conversion of pension rights in Russia was carried out in 2002 - into pension capital.
From January 1, 2015, on the basis of laws No. 400-FZ and No. 424-FZ that came into force on December 28, 2013, the insurance and funded parts of the old-age pension became independent pensions.
We remind you that the funded pension is formed and calculated according to the old principle (it still remains relevant only for citizens born in 1967 and younger), and the insurance pension is calculated according to the new formula - based on the pension points accumulated by the citizen during his working life .
SPS = FV × PC 1 + IPK × SPK × PC 2,
where SPS is the insurance pension.
FV - fixed payment.
PC 1 - bonus coefficient for increasing the fixed payment at a later retirement.
IPC - individual pension coefficient.
SPK is the value of the pension coefficient at the time of registration of the pension.
PC 2 - bonus coefficient for increasing the individual pension coefficient if a citizen continues to work despite reaching retirement age or another condition for the emergence of the right to an insurance pension.
To understand how the old age pension is calculated according to the new formula, let’s consider what its main components are and how they are calculated: a fixed payment (the former basic part) and an individual pension coefficient, as well as who will be entitled to bonus coefficients.
So, we have become familiar with the general concepts regarding how to calculate a future pension. Now let's cover this topic in more detail.
Fixed part of the insurance pension
To calculate an old-age pension, you should know about the existence of a fixed payment (hereinafter referred to as FV) to the insurance pension established by Art. 16 Federal Law “On Insurance Pensions” No. 400-FZ dated December 28, 2013. In 2019, the payment amounted to RUB 5,334.19. This is the guaranteed minimum of the state for every Russian citizen of retirement age. Twice a year, the PV is indexed: on February 1, taking into account rising consumer prices, and on April 1, based on the income of the Pension Fund for the previous period. April Fool's compensation is stated in the legislation as possible, and the possibility is determined by the Russian government.
Fixed payment to the insurance pension for various categories of citizens, northern pension
|
Gr-not entitled to ATP |
Number of dependents |
PV size (rub.) 1 |
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Under 80 years of age and without a disability |
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Those who have reached 80 years of age or disabled people of the 1st group |
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Under 80 years of age and without a disability, worked in the Far North for at least 15 years, insurance experience of at least 20 and 25 years for women and men, respectively |
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Those who have reached 80 years of age or are disabled in group 1, have worked in the Far North for at least 15 years, have an insurance record of at least 20 and 25 years for women and men, respectively |
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Under 80 years of age and without a disability, have worked in the Far North for at least 20 years, insurance experience of at least 20 and 25 years for women and men, respectively |
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Those who have reached 80 years of age or are disabled in group 1, have worked in the Far North for at least 20 years, have an insurance record of at least 20 and 25 years for women and men, respectively |
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Work experience in agriculture for at least 30 years, not engaged in activities with mandatory pension insurance, live in rural areas 2 |
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1 Amounts are rounded to hundredths of a ruble
Individual pension coefficient - the basis of the insurance pension
The individual pension coefficient (hereinafter referred to as IPC) is an innovation in the practice of calculating pensions. It has become a key component in the formula for a secure old age. One might even say - the basis for a citizen who wants to provide for himself after retirement and live with dignity. The higher the pensioner’s IPC, the greater the chance of achieving this goal.
The IPC is determined at the time of registration of an old-age pension and consists of the sum of the annual pension coefficients (hereinafter referred to as the APC) or pension points accrued to a citizen annually in the process of official work with a “white” salary. That is, for those years when employers transferred insurance premiums to the future pensioner.
The new pension legislation also determined other periods for which citizens will be accrued pension points, and provided for coefficients for increasing the IPC and FV - for later registration of the implementation of pension rights.
How is the pension calculated in 2018-2019, are there any differences from the calculation in 2017
Now the formula for calculating the annual pension coefficient looks like this:
GPC = SSP / SSM × 10
Three quantities are involved in the calculation of the GPC:
Don't know your rights?
- The amount of insurance pension contributions from a citizen’s annual income (SSP).
- The amount of insurance premiums is 16% of the maximum contributory salary, established annually by resolutions of the Government of the Russian Federation (SSM).
- Multiplier 10. It was introduced for the convenience of calculating pension points. Also, 10 is the maximum number of annual pension points that can be awarded to a citizen in an accounting year.
But future pensioners will be able to receive 10 points per billing year only starting in 2021. And only those who do not participate in the formation of their funded pension.
Maximum values of the pension coefficient by year
|
Year of granting old-age pension |
Maximum value of IPC with contributions to funded pension |
Maximum IPC value without contributions to a funded pension |
1 When calculating pension coefficients, values are rounded to three decimal places.
When calculating an old-age pension, pension points for all years when the employee received insurance contributions from employers to the compulsory pension fund are summed up and an individual pension coefficient is displayed. The longer a citizen worked and the higher his salary, the higher his IPC will be. Accordingly, the higher the citizen’s IPC, the higher his pension income.
IPC= GPC 2015 + GPC 2016 +…GPC 2030
where GPC 2015 is the number of pension points earned by a citizen in 2015, GPC 2016 - in 2016, etc.
Calculation of individual coefficient: which years are better to take
Let's try to calculate our pension ourselves. As mentioned above, the annual pension coefficient is equal to the ratio of insurance pension contributions from a citizen’s income for the year to the maximum insurance pension contributions established by the state in the accounting year, multiplied by 10. For clarity, we will give examples. But first, let us recall that the total amount of pension insurance contributions paid by the employer to the employee is equal to 22% of his salary. Of them:
- 6% goes to the so-called solidary part of the Pension Fund, from which a fixed payment (basic part) of the insurance pension is paid to current pensioners;
- 16% are intended for the formation of the employee’s insurance pension or, at his request, 10% of them go to the insurance part, and 6% to the funded part.
An example of calculating the CPC with a deduction for an insurance pension of 16% of income
The salary of a citizen in 2018 is 20,000 rubles. per month. The amount of insurance contributions that the employer will pay to the Pension Fund will be equal to: 20,000 rubles. × 12 months × 16% = 38,400 rub.
In 2019, the maximum contributory salary is RUB 796,000. The amount of maximum insurance contributions from an employee’s income is RUB 127,360.
GPC = 38,400 / 127,360 × 10 = 3.015
The annual pension coefficient of a citizen in 2019 will be 3.015 pension points.
An example of calculating the CPC with a deduction for an insurance pension of 10% of income
For clarity, let’s take a citizen with the same salary for 2019. His employer contributes only 10% to the insurance pension, and the remaining 6% goes to the funded pension. The amount of pension contributions to a citizen’s insurance pension for the year will be: 20,000 rubles. × 12 months × 10% = 24,000 rub.
GPC = 24,000 / 127,360 × 10 = 1.884
The annual pension coefficient of a citizen in 2019 will be 1.884 pension points.
Since the size of future pensions directly depends on the value of the civil capital complex, it is clear from the examples that the formula for calculating pension points advocates refusal to participate in the formation of a funded pension.
Additional pension points: how to check the correctness of accrual
In addition to the pension points accrued to a working citizen for the payment of insurance pension contributions by his employer, when calculating the IPC, other periods during which pension contributions were not paid to the citizen are taken into account. For each full calendar year, the GPC is accrued under the following circumstances.
- Care of one parent for a child up to 1.5 years old (no more than 6 years in total):
- for the 1st - GPC = 1.8;
- for the 2nd - GPC = 3.6;
- for the 3rd or 4th - GPC = 5.4. - Caring for a disabled child, a group I disabled person, a person over 80 years old - GPC = 1.8.
- Military service by conscription - GPC = 1.8.
Point cost
The cost of 1 pension point in 2019 is 87.24 rubles. It will increase annually:
- February 1 in accordance with the inflation rate over the past year.
- April 1, according to a formula that includes such values as the amount of revenue to the Pension Fund budget in the form of insurance premiums and federal transfers.
Premium odds
Despite the fact that in Russia the retirement age comes much earlier than in most other countries of the world, Russian legislators have not taken the path of raising the age limit for eligibility for an old-age pension. But they included tools in the pension calculation formula that encourage people to retire later of their own free will.
If a citizen, having reached retirement age and the onset of pension rights, does not encroach on receiving funds from the Pension Fund, that is, does not apply for an insurance pension, but continues to work, the legislation provides for an increase coefficient of the fixed payment to the insurance pension (in our formula PC 1) and an increase coefficient individual pension coefficient (PC 2).
Indicators of bonus coefficients for full months of voluntary deferment of receiving a pension
|
Number of months |
IPC increase coefficient |
PV increase factor |
|
120 or more |
Based on the above indicators, it is easy to calculate that if a citizen does not apply for an insurance pension within 10 years after becoming entitled to it, then the PV will increase by 2.11, the IPC - by 2.32 times. And the old-age insurance pension will accordingly increase by almost 2.5 times.
Conversion of “old” pension rights into points
Citizens who reached retirement age in 2015 or who will reach it a few years later are worried about what will happen to their pension rights, which until now have been measured in rubles, and not in points. The same question worries people who are already receiving an old-age pension - after all, its further indexation will take place on the basis of pension points, which they do not seem to have.
The new pension legislation has provided a formula according to which pension rights formed before January 1, 2015 will also be converted into points:
PC = SCH/SPK
SCH - the insurance part of the labor pension as of December 31, 2014, excluding the basic and funded parts.
SPK is the value of the pension point at the time of retirement.
The resulting sum of points will either constitute the citizen’s individual pension coefficient if he is already a recipient of an insurance pension or is retiring, for example, in 2019, or will be added together with subsequent annual pension coefficients for the withdrawal of the IPC.
How pension is calculated examples
Let's return to the new pension formula:
SPS = FV × PC 1 + IPK × SPK × PC 2
Now we know how its components are calculated, and we can find out the approximate size of the future pension.
Example 1. Retirement upon reaching retirement age
Citizen Ivanova reaches retirement age in 2017. In 2015, her pension rights were converted to 70 pension points. For 2015-2017, Ivanova will earn another 5 points.
Citizen Ivanova was on maternity leave twice for 1 year to care for a child up to one and a half years old. For her first child she received 1.8 pension points, for her second - 3.6.
By adding up all the pension points, we obtain the IPC of citizen Ivanova at the time of the right to apply for an insurance pension - 80.4 points.
Let’s assume that the minimum amount of a fixed payment (FP) to an insurance pension in 2017 will be 5,000 rubles, and the cost of a pension point (SPK) will be 100 rubles. Citizen Ivanova has no reason to use bonus coefficients, so the formula for calculating her pension looks like this:
SPS = FV + IPK × SPK
We calculate the old-age insurance pension of citizen Ivanova:
5,000 rub. + 80.4 × 100 rub. = 13,040 rub.
Example 2. Retirement after the right to an insurance pension arises
Let's try to calculate the monthly income of a pensioner from the distant future. Let's consider a conditionally ideal option for calculating a decent pension using the new formula. After all, as legislators assure us, all their efforts and reforms are aimed at achieving a decent standard of living for Russian pensioners. So, let's dream according to the new formula.
Citizen Petrov began working in 2015 at the age of 17 years. After working for a year, he was drafted into the army and served for two years. He was awarded 3.6 pension points for his military service.
Citizen Ivanov received a higher education by correspondence and worked without interrupting his insurance period until retirement age and 5 years after the right to an insurance pension became available. In total, over 48 years of insurance experience, he earned 400 pension points. Together with the “military” points, his IPC was 403.6 points.
Let us assume that by the time citizen Petrov retires in 2063, taking into account all possible indexations, the PV will be 20,000 rubles. But citizen Petrov worked in the Far North for 20 years, so his financial allowance has been increased by 30% and amounts to 26,000 rubles.
Petrov’s bonus coefficients for 5 years of voluntary pension deferment are: for a fixed payment - 1.27, for an individual pension coefficient - 1.34.
Let the cost of a pension point in 2063 be 600 rubles.
We calculate the old age pension of citizen Petrov, taking into account bonus coefficients:
26,000 rub. × 1.27 + 403.6 × 600 rub. × 1.34 = 324,527.42 rubles.
Of course, it is difficult to imagine what will happen to the ruble by 2063, but today it looks more than decent.
It must be said that the given calculation of the old-age pension according to the new formula is approximate. Not only in the second example, but also in the first. If you want to get a more accurate result, register on the website of the Russian Pension Fund. The Pension Fund already has all the information about the pension rights of officially working or working citizens that have been formed to date, namely the number of years and months of insurance experience and the number of pension points already earned. This information can be viewed in the personal account of the insured person. Enter additional information into the pension calculator about your current job and salary, and other periods for which pension points are calculated. Click the “Calculate” button and you will find out the size of your pension. Plan a well-deserved rest based on the result obtained, if it suits you. Or, if possible, take steps to increase your future pension. Now you know how to do this.
Can I now count on a preferential pension? If yes, how to calculate it?
Whether the new pension reform provides for preferential pension provision is of concern to those who worked in hazardous industries, in education, medicine, etc. Yes, today preferential pensions have been preserved.
It is quite natural that such citizens are also interested in how to calculate a preferential pension. Let’s say right away that you shouldn’t look for any special differences in the calculation of a preferential pension from the calculation of a regular one, since the same formula is taken as a basis, its size is directly dependent on the amount of accumulated points, which have been taken into account since 2015. Deductions are transferred to these into the compulsory pension insurance system, using the formula:
IPO/NPO x 10
IPO - the amount of individual pension contributions for the year,
NPO - the standard amount of pension contributions for the year.
However, it will be much easier not to do independent calculations, but to go to the Pension Fund website and use the pension calculator available there.
What, first of all, affects the size of the future pension, a VN.ru correspondent found out with the help of specialists from the regional branch of the Pension Fund of Russia.
The insurance pension is formed from funds transferred by the employer for his employee throughout his working life. Now the insurance pension is calculated using a system of points, which are earned by a citizen every year and summed up over his entire working career. A payment from the state (fixed payment) is added to it - an analogue of the basic part of the pension. Today its size is about five thousand rubles. The pension, like the fixed payment, is indexed annually for inflation. There is also another type of pension - funded. It is received by those who have pension savings.
Most people in Russia today receive an old-age insurance pension. There are three specific conditions for its appointment. The first is reaching the generally established retirement age (currently it is 55 years for women and 60 for men). The second condition is the presence of a minimum duration of insurance experience - at least 15 years (this indicator is being introduced step by step: this year 9 years are required, next year it will be 10, etc.). And the third condition is the presence of a minimum number of individual pension coefficients (there should be at least 30 by 2024, and in 2018 - 13.8).
What determines the size of your pension today? The pension is calculated depending on the number of individual pension coefficients earned. The sum of the coefficients that a person has earned throughout his entire career is multiplied by the cost of one coefficient. From this the amount of the insurance pension is obtained. The higher the salary, the higher the coefficient.
“First of all, the size of the future pension is influenced by the size of the official (“white”) salary - for official employment,” recalls Lyudmila Yakushenko, deputy manager of the PFR branch for the Novosibirsk region. - From the official salary, the employer makes contributions to the pension fund, where all this information is taken into account in the form of pension rights. Now every person officially employed and insured in the compulsory pension insurance system can log into his personal account on the Pension Fund website and see how much individual coefficients he has already earned at the moment.”
Deputy Manager of the PFR branch for the Novosibirsk region Lyudmila Yakushenko
What do people of pre-retirement age need to do now to increase their pension? The answer is simple - the size of the pension is directly affected by the official salary and is taken into account throughout the entire working life of a person. Also, the size of the pension is directly affected by the length of service. The higher the length of service, the more a person earns, the more insurance premiums are paid for him, the greater the amount of individual pension coefficients will be. So the influence of length of service and official wages on the size of the pension is obvious.
By the way, the length of service includes not only work activity. The law provides for periods for which certain coefficients are also established - they are taken into account when assigning a pension. For example, this is military service on conscription or the period of caring for a child up to one and a half years.
“The size of the pension may also be affected by a later retirement,” explains Lyudmila Yakushenko. - If a person decides to assign him a pension later than the established retirement age, then for each full year of application later (retirement age) - additional coefficients are established for him. For example, if a woman decided to retire not at 55, but at 56, then her insurance pension increases by 1.07 times, 5 years later - by 1.45.”
“In fact, it is not so important what exactly the formula for calculating pensions is in force now - it is important that a person has an official salary, a certain length of legal work experience,” says Lyudmila Yakushenko.
The next point is also important - you cannot earn a high pension only in the last year or two of your career. When calculating a pension, the entire contribution to formation during the entire working life is taken into account: not only the size of the salary, possibly high, at the end of a career, but his entire working activity throughout his life.
When calculating pensions, only official information will be taken into account. Let us remind you again. Today you can see in your personal Pension Fund account what the individual coefficient will be. This information comes to the Pension Fund from the employer, so the size of the future pension depends on his conscientiousness.
Unlike people of pre-retirement age, young people do not yet think about the size of their future pension. But now it is worth clarifying the prospects for the expected size of payments. Because for young specialists, first of all, the indicator of “purity” of wages is important. If in the future a person plans to receive a decent pension, the salary should not be “black” or “gray”. Only official, “white” wages give a chance to accrue a decent pension.
“The formation of a person’s pension right begins from the first day of his working life. And if, in addition to the main job, there is additional income, then it is also important to have an official employment contract, which provides for contributions to the pension fund,” recalls Lyudmila Yakushenko.
Ahead of us lies the implementation of a new pension bill. If the retirement age is increased, how will this affect the increase in pension amounts? Pension Fund specialists are confident that the accrual principle will remain the same if the bill on raising the retirement age is implemented. If a person works more, he will have more funds, from which pensions will then be calculated.
Now there are many pensioners who continue to work while receiving a pension. According to the regional branch of the Pension Fund of Russia, today in the Novosibirsk region 25% of the total number of pensioners are working. They were assigned a pension, which is paid without taking into account current indexations, but annually, from August 1, it is recalculated taking into account their labor contribution for the previous calendar year. For non-working pensioners, payments are indexed annually. The coefficient is determined by the Government of the Russian Federation. For example, since January 2018, insurance pensions have been indexed by 3.7%.
Every person wants to receive decent money, and this desire does not depend on age. But in terms of pension provision in Russia there are significant problems. Therefore, many are interested in the factors that actually influence the size of the pension. This material examines the factors that influence the size of the pension, and we will also analyze whether the help of a lawyer in Moscow is needed when calculating a pension.
General provisions
First of all, it should be clarified that this article will focus exclusively on insured labor pensions. Special pensions are the topics of other articles that are on our website.
Since Russia has had an insurance pension system since 2002, citizens actually determine their own pension destiny. And if everything is done correctly, and not at random, then citizens will not have any questions about when pensioners’ pensions will be raised when they retire.
In other words, instead of the concept of length of service, adopted in the USSR and used in Russia until 2002, the concept of insurance periods was introduced. And the amount that is paid to the pensioner can no longer be considered as state social assistance or subsidies. Rather, it is a return of funds (taking into account inflation and indexation) that the state withdrew from a person’s salary when he was working.
The state, of course, pays a certain fixed part, but its volume is small compared to the remaining “body” of the payment. And the remaining part of the amount received monthly is formed based on the points accumulated by the citizen. The personal coefficient (points) is formed from payments made by the citizen himself (if he was engaged, for example, in business or worked as a lawyer), or the employer transferred them for him.
But not only the funds actually transferred affect the size of the insurance pension. This also includes other factors that contribute to an increase (or decrease in payments). Let's look at the most important ones in more detail.
Experience and points
Let's return again to experience and points. The state has established minimum requirements for the recipient of pension payments. Since 2016, the minimum length of service requirement has increased. If in 2015 only 5 years of experience was enough, then in 2018 9 years are already required. The length of service requirement increases by 1 year every year and by 2024 the minimum threshold should be 15 years. There are no plans for further growth of the indicator yet.
Requirements for pension points are also increasing. If at the beginning of the reform the indicator was supposed to correspond to 6.6 points, then by 2025 this figure will increase to 30.
If a citizen cannot accumulate the required length of service and points in his account, then, alas, he will not be able to apply for an old-age insurance pension. And there are few options left:
- find a job to replenish the required length of service and points in your account;
- wait until the age of retirement for social old-age pension (from 2024, 70/65 years for men/women, respectively).
Non-insurance periods
Many people periodically find themselves in situations where they do not have the opportunity to find a job or engage in business. The pension system provides compensation for non-insurance periods: despite the absence of active labor activity, the provision of documents confirming the non-insurance period will allow the pensioner to increase the amount of their pension. Non-insurance periods include:
- birth and care of a child up to 1.5 years old (no more than 6 years old, i.e. only 4 children are taken into account);
- caring for a disabled person (child, adult of group I disability, 80-year-old relative);
- service in the RF Armed Forces.
At the same time, for each year of the non-insurance period, a citizen “drips” 1.8 points into his personal account at the Pension Fund. However, such non-insurance periods will have to be documented when applying to the Pension Fund with an application for indexation of pension benefits.
Level of “white” salary
Transfers to the Pension Fund of the Russian Federation are made only from “white” salaries – that is, those that are shown to the state and from which taxes are paid. “Gray schemes” exclude a large amount of contributions, which means you no longer have to apply for a large pension. The “black scheme”, that is, work without registration, completely excludes the receipt of an insurance labor pension. And the best that an unofficial worker can claim is to apply for a social pension at the age of 70/65 for men/women, respectively.
The scoring method is quite simple. The annual income before withholding income tax is taken and multiplied by 0.16 - these are actual contributions to the Pension Fund at a rate of 16%. The amount received must be divided by the maximum contributionable salary (set by the state annually). The resulting number is multiplied by 10. This will be the actual number of points earned per year.
But you can present the above data more roughly: you need to divide the annual salary by the annual minimum wage. The resulting number will also approximately reflect the pension points actually earned during the year.
Late application for pension
Another rather interesting technique on how to increase your pension in modern Russia is a late application for the assignment of payments. The longer a person delays receiving a pension, the higher the amount assigned for payment will be.
Muscovite Ivan Yu. turned to a lawyer for help. The essence of the appeal was that the man was supposed to retire from 2020 (taking into account transitional provisions), but did not want to part with his favorite job for several more years. Ivan’s question was whether he was obliged to apply for a pension, or whether he could not worry and continue working in order to receive a higher salary later.
The lawyer explained to the man that retiring is his right, not his obligation. Moreover, if a man applies for appointment only 5 years after the right to it arises, then he will be paid a pension 40% more than if he applied for it immediately when the right arises. Also, the pension itself will increase due to contributions made by Ivan’s employer.