More and more often, citizens in Russia are wondering what pension is made of. This is an important issue, which is recommended to be taken care of in youth. The pension system in the Russian Federation is constantly changing. Over the past few years, many theories and systems have been put forward regarding the provision of pensions to the population. Some of them have already entered into force, some are under consideration. Nevertheless, an important point is the determination of the components of a pension. What does it consist of? Which happens? How much on average is a citizen entitled in a particular case? All this will be described later.
Pensions are ...
Pension is a monthly cash payment due to specific citizens. Most often, it is assigned to persons who have reached retirement age. So far, in Russia, men go on well-deserved rest at the age of 60, women at 55. But some pensions are paid earlier.
In the Russian Federation there is a huge amount of payments of this type. For example, the following pensions are distinguished:
- social;
- labor;
- loss of breadwinner;
- by disability.
At the same time, a citizen has the right to receive only one type of material support from the state. Therefore, many are trying to understand what makes up a pension. In this case, it will be possible to choose the most beneficial type of payment for the person.
Payouts
As already mentioned, the question under study is of interest to most people who permanently reside in the territory of the Russian Federation. There are only 3 main types of payments in the country. These include the following compensations:
- basic;
- cumulative;
- insurance.
These are the components of retirement benefits. Without them, the studied payment simply does not take place. What features of the formation of state support for the elderly are recommended to pay attention to?
Three significant components
For example, what is related to each type of component of pensions? Having figured out all this, we can confidently say from which, in principle, support for older people in the country is formed.
- The basic part of the pension is the minimum amount of money that is paid to a citizen and provides for life. Issued monthly to assist pensioners.
- The cumulative part is formed from deductions made by an employer for an able-bodied citizen. Or from money that was voluntarily transferred by a person to pension funds. The amount of payments depends on the deductions made.
- The insurance part is an important component for all persons who have ever worked officially. What is a pension made of? Its insurance part is a kind of compensation for the work. The size depends on the length of service, salary, and retirement age.
Old age pension
Now a little about the specific types of pensions and the rules for their formation. The first option is old-age payments. They can conditionally be called insurance. Why? What does an old-age pension consist of?
Everything is extremely simple. Based on the previously given definition, it can be concluded that an insurance pension is money earned over a lifetime and given to pension funds. This payment can also be called labor. Indeed, without work, deductions, as a rule, are not made.
The composition of such material support necessarily includes the base part. It is set by the state in a fixed amount. If a citizen's work was associated with some particularities, they will also affect retirement. For example, there is a bonus in the form of compensation for difficult working conditions or length of service. This should be remembered by every citizen.
About the funded part
And what does a labor pension in the funded area consist of? In connection with the current changes in the pension system of the Russian Federation, such payments are formed in several ways.
More precisely, then:
- A citizen or employer can make contributions to the FIU of the Russian Federation in one way or another. Then the payout fund and the size of the funded part will be controlled by the relevant state body.
- A person has the right to make voluntary insurance contributions for the accumulation of a future pension. To do this, he will have to contact a non-state pension fund and conclude an agreement. Then monthly deductions are made to the organization. Of these, in the future the funded part of pension payments will be formed.
Accordingly, the more people transferred money for their entire lives to the country's pension funds, the higher the pension will be in the future. It is important that to receive this payment today you need to have 30 points under the pension scheme. They are accrued for experience exceeding the minimum. At the moment, it is 5 years. Otherwise, you can only rely on a social pension. It is minimal, but guaranteed to all senior citizens.
Social support
An old-age labor pension consists of several components. Therefore, it is difficult to say exactly how much a pensioner will receive in a particular case. There is also a social pension. What kind of state support is this and how is it formed? Social pensions, as already mentioned, are the minimum payments to the population. They are due to all citizens who do not have seniority. This support is also provided to people with disabilities. It is necessary to maintain the life of a person who has no other sources of income. The size of social pensions is set by the state in each region separately. It depends on the quality of life of the population and the cost of living. On average, in 2016, such a payment amounted to about 8,700 rubles. Its minimum size was within 4,900 rubles.
Settlement system
It should be noted that in Russia the pension system has undergone some changes. Now everyone is able to independently understand how much he will receive in old age. What is a pension made of? Insurance payment today is formed according to some system established by the state. What is it about? According to data published on the official website of the PFR, an insurance pension is the amount of money generated by multiplying the available retirement points by the cost of one point. A fixed payment is necessarily added to it.
Accordingly, the total amount of an old-age labor pension is calculated taking into account the pension points accumulated by a citizen over a lifetime . They are credited to a peculiar account for the worked year. The more there are, the higher the payout will be. The cost of a pension point is determined by the state annually. This component is constantly changing. For example, in 2017, the point value is 78 rubles 28 kopecks. A fixed payment is 4,805 rubles 11 kopecks. It goes through the indexing process every year.
There are no more pension calculation systems. It is recommended to focus on the given scheme. By the way, seniority is accrued in Russia not only during the work officially. For example, while caring for a disabled person 80 years or older. During this period, the state makes some contributions to the Pension Fund, and seniority will be accrued.
How to make a pension
Now it’s clear that the total amount of a retirement pension consists of many components. In view of the reforms, some consider the pension system of the Russian Federation complex. In practice, the population is actively turning to NPFs and independently forms the funded part of payments to old age.
And how can you get the right support from the state? Making it is not so difficult. It is enough to contact the FIU with a list of documents. Namely:
- ID card
- SNILS;
- work book;
- birth certificates of all children;
- details of the account to which the money is to be transferred;
- evidence of doing business;
- military card (if available);
- any certificates confirming unearned periods counted as seniority;
- awards and other papers confirming the special position of a citizen.
After that, a person will be calculated according to previously proposed schemes, and a pension will be assigned.
Conclusions and Conclusions
From now on, it is clear that the total amount of a retirement pension consists of a very large number of components. The pension system of the Russian Federation has been constantly changing lately. And therefore, all the proposed schemes for calculating state support are relevant only today. It is likely that soon other options for generating pension payments will be used.
What is a pension made of? Based on everything previously said, we can conclude that the following elements influence:
- earnings of a citizen;
- seniority;
- labor sphere (in some positions retirement is done earlier);
- retirement age;
- the number of accumulated pension points;
- retirement point value;
- unearned periods counted in the length of service;
- amount of basic payments.