According to the Law of the Russian Federation, the minimum old-age pension is equal to the current subsistence level. Often people ask questions about how many years of service should be for a minimum old-age pension to be assigned after retirement. The law gives the following answer: a social pension will be established for a citizen in the event that he does not have the right to receive a labor pension. In other words, if you do not have documented experience and earnings, then you will receive a social pension in any case.
What is behind the concept of minimum pension
Those who have had their work experience since 2002 are guaranteed accrual of a retirement pension. If there is no seniority or salary certificate, then a minimum old-age pension will be assigned. All other savings that a citizen will receive in retirement age, he makes independently. Thus, the personal responsibility for how you will live in old age lies with you.
If today you work without a work record or for a “minimum wage”, helping the employer to avoid paying taxes and getting the so-called “black” salary, then he pays contributions to the pension fund at a minimum. The average earnings, as well as the seniority coefficient, according to which your pension will subsequently be calculated, will be minimal.
The Law does not have the concept of “minimum old-age pension”, it says that if you do not have enough experience and average earnings to accrue a pension, then you will be assigned a social pension, the amount of which in 2012 is 5122 rubles, that is, a living wage. If the pension accrued to you due to low earnings does not reach the subsistence level, then the state will pay extra to it.
The most common questions about calculating a pension
On forums on the Internet, people ask typical questions about calculating a pension: how, when, how the minimum old-age pension is calculated.
- Why, in the presence of seniority (indicate from 26 to 45 years), a low pension is accrued?
The fact is that many indicators affect the calculation of pensions. In addition to the seniority coefficient, which has a constant value and grows with the experience (having a limit of 0.2), the salary, which is calculated according to a separate formula, is also taken into account. I will explain with an example:
For example, a person’s seniority coefficient is maximum - 0.2, and the salary indicator is minimal (people didn’t earn a lot), then the pension can be calculated as follows: 0.2 x 1.42 x 1671 = 474.574. We consider further: (474.574-450) x228 = 5600.59, that is, a little more than the cost of living. If, on the contrary, there is a high salary, but a short experience, then the probation coefficient will reduce the total amount of the future pension. Both indicators have a “ceiling” above which their value in the calculation formula cannot be.
So your future pension, one way or another, but limited, its maximum value may be about 8-9 thousand today. In the future, in accordance with the Law, a pension is indexed annually depending on inflation.
- What is the minimum old-age pension and when it is accrued, does the absence of a work book affect its size.
The scene seen at the dental clinic comes to mind when the doctor asked the nurse if he would accept the homeless man brought by the policeman and replied: “Honey, he’s ours, Russian!” and put him, dirty and unwashed, in a clean medical chair. So the state will give a social pension to any citizen of Russia, regardless of whether he has a work book or not.
The minimum old-age pension is equal to the subsistence minimum for a given period of time (since this value is not constant). At the same time, it will be the same for a citizen with a work book and insufficient working experience (for example, from 5 to 10 years) and for someone who does not have a book. The pension will be social. A pension is awarded when the retirement age arrives and a minimum old-age pension is assigned.
- Is there a difference between accrual of pension without experience and accrual according to the submitted certificate of wages.
It exists because without a seniority a fixed social pension is assigned, equal to the subsistence minimum for the current period of time, and if there is a seniority and a certificate of wages, the pension will be calculated in accordance with the Law. It is not a fact that it will be much more than a social pension, but it will be calculated, whereas without a certificate of earnings it will be assigned. In the future, with annual indexation, these pensions will increase by different values.
What awaits future retirees
In the country, the number of able-bodied citizens decreases, due to which a pension fund is formed and pensions are paid. Currently, the number of working people in relation to pensioners is a number equal to the figure of 1.7. In ten years this ratio will become unequal, there will be more pensioners than working people. The government may be forced to take unpopular measures, such as increasing the retirement age.
In such circumstances, the accumulation of pensions can be crucial, since the state is not able to maintain a large army of unemployed citizens. Therefore, the sooner the citizens themselves become puzzled by the problem of their future life in retirement, the better and better their life in old age will be.