The average old-age pension in Russia is equal to thirteen thousand rubles. Of course, it is very difficult to live with dignity, having such a low income. It is worth remembering that in old age the cost of drugs increases. The age of access to state security is sixty years for men and fifty-five years for women. Citizens begin to receive state support in our country five years earlier than their peers in many other countries. Since 2000, the state has managed to significantly reduce the gap in the amount of cash payments in comparison with other developed countries. What to expect next? In 2018, the state plans to raise pensions three times. For different categories of citizens in different periods: January, April and August. You can read the answer to the question whether there will be a pension increase this year in this article.
General information
Pension is a payment in cash, which is regularly paid by the state to a certain category of persons. Citizens entitled to a pension include people who have reached retirement age, have a disability, or have lost a breadwinner.
Payments on a monthly basis to replace a person’s lost earnings are called pensions. In our country, it is generally received by citizens who have reached the age prescribed by law. For this reason, they are entitled to an old-age pension from the state. The age at which such payments begin is established by regulatory acts in each state separately, even within the same country, this value can change over time. The increase in the age level of access to state security indicates two points:
- Positive changes in the life expectancy of citizens of the country.
- Negative economic reasons.
Currently, in the Russian state, citizens receive an old-age pension after the following age:
- Women after fifty five.
- Men after sixty years.
Although the onset of retirement age is not the only condition for accruing state security in Russia. Another necessary condition is the presence of the required work experience. For the current period, pension reform provides for the required minimum length of service of at least five years, but over the next few years it should gradually increase to fifteen years.
The old-age pension consists of insurance contributions paid by the responsible employer for their employees in the FIU. All contributions are added to the person’s retirement account. Most of them go to payments to citizens receiving state security today. This is the so-called insurance part of payments. However, another part of six percent is invested to make a profit, which in the future also increases pension capital.
Anyone who has reached the appropriate age, the person has the right to contact the appropriate services for calculating his pension. For its calculation, there is a special formula. It includes the basic pension, the amount of pension savings until 2002, the valorization and the amount of pension capital created after 2002. The resulting number is divided by two hundred thirty-four. This figure is the estimated number of months during which a citizen will receive payments. Tentatively, this is nineteen and a half years. This number is used only in calculations, so if a citizen lives longer, then the pension will be paid until the end of his life.
Calculation formula:
SP = PV × PK1 + IPK + CPK + PK2, in which:
- JV - insurance part.
- PV is a fixed component.
- PK1 is a special coefficient applied to citizens who have postponed retirement after the appropriate age.
- IPC - an individual coefficient.
- CPK - the price of a conventional coefficient.
- PK2 - the price of a special coefficient.
Five years ago, a new reform of the country's pension system began. It implies a transition to another principle of calculating government payments. In accordance with the new rules, the size of the pension will be formed on the basis of the value of points (coefficients). Points are formed according to the same principle by which pension capital was formed. The number of points will increase if a citizen applies for a pension later than receives the right to accrue it.
In Russia, there are three main types of pensions for citizens:
Let's consider them in more detail.
Social pension. This type of payment is material assistance from the state to certain categories of citizens who are unable to work. It is appointed in accordance with certain circumstances and may cease to be paid at any time as soon as the living conditions of a citizen or a dependent person change.
A social pension is paid to citizens with disabilities, people who have reached sixty-five (men) and sixty years (women), but who have no working experience, as well as children who have lost at least one of their parents. Depending on to whom the pension is assigned, the terms of its appointment are established and changed. For example, at the age at which it is no longer possible to carry out labor activities, a person is supported by the state until the end of his days.
A citizen with disabilities receives money from the country's budget only with regular confirmation of disability. The survivor's pension is granted until the child reaches the age of majority. Sometimes the appointment is extended until the age of twenty-three, provided that the child is a full-time student of a higher educational institution. Social support is provided only if there are no other payments.
State support relies on citizens who do not have an official source of income. Getting state social benefits is a painstaking and lengthy process. It requires a large number of documents. To calculate a disability pension, an extract from the survey and a certificate of insufficient income of other family members, if any, are required. A citizen with disabilities must confirm the absence of a minimum length of service. Otherwise, a person will be assigned a different type of payment. Small children may also be provided with survivor benefits. These are monthly payments with a fixed amount. Their size does not depend on the number of dependents.
Old-age pensions are calculated for all citizens who have reached the age of sixty years (for men) and fifty-five years (for women), but the condition must be met that these people have at least five years of work experience. Pension consists of insurance and funded part. It depends on the age of the person, on official contributions to the FIU and the date of retirement of a citizen.
The right to receive social benefits in the amount of fifty percent of the salary is received by military personnel after twenty years of service (without preferential service, at thirty-seven years). Money supply does not go through the FIU, but through the budget of the Ministry of Defense of our country. Employees in the military industry do not pay contributions to the FIU. The amount of cash payments to the military depends on the period of their public service, years of service and other factors.
Minimum size and increase
State support cannot be less than the minimum subsistence level. Therefore, depending on the region, the minimum pension is from five to seven thousand rubles. Some regions pay non-working citizens a pension return from the local budget. The highest payments in Russia are in Chukotka and in the Kamchatka Territory.
The subsistence minimum is regulated in accordance with the laws of the country. The subsistence minimum is formed on the basis of a consumer basket consisting of food products, non-food goods and services. A consumer basket is formed on the basis of expenses sufficient for one person to live in a particular state or region. The calculation of the subsistence minimum is made for the following purposes:
- Obtaining information about the standard of living of citizens in the region or in the country as a whole.
- Development of social programs.
- Proper budget planning at all levels of the country.
You can get acquainted with the minimum minimum for living in any region of the country on the website of the FIU. For instance:
- The city of Moscow - eleven thousand four hundred twenty eight rubles.
- St. Petersburg - seven thousand nine hundred ninety-two rubles.
- Murmansk region - ten thousand four hundred eighty-one rubles.
- Karachay-Cherkess Republic - six thousand six hundred and ten rubles.
- North Ossetia - six thousand eight hundred thirty rubles.
- Nenets Autonomous Okrug - fourteen thousand five hundred and forty rubles.
- Arkhangelsk region - nine thousand eight hundred ninety-three rubles.
The average living wage in the country today is ten thousand five hundred twenty-four rubles.
If a citizen receives a pension less than the specified amount, then this situation should be corrected. Could such a situation arise at all? Yes maybe.
If a citizen's pension is less than the subsistence minimum established in the region, then he has the right to receive a supplement to the required level. This issue is addressed by social protection authorities. If they deny the citizen his right, then they should seek a surcharge, defending their interests in court. The increase in the amount of state payments can only be made for retirees and low-income citizens.
Pensioners by age have every chance of getting a supplement from the regional authorities to the cost of living. The decision is made after assessing the level of human security. The main sources of income that social protection authorities pay attention to are:
- Pension.
- Social Security.
- Availability of benefits for services (free travel, subsidies for paying utility bills).
- Other income and support measures for citizens of the country.
If a person lived on his pension and did not apply for help, the relevant authorities are obliged to compensate him for lost funds for the entire time that he received from the state payments less than the cost of living.
Pensioners who work and have official income do not have the right to apply for a supplement. This prohibition does not depend on the size of the salary of a citizen. Even if the pension and wages in the aggregate do not reach the subsistence level.
To receive a supplement up to the minimum subsistence level, a citizen of retirement age must come to the office of the Pension Fund of the Russian Federation at the place of registration and provide the required package of documents:
- Passport.
- Pensioner's ID.
- Documents confirming all available income and payments.
- Statement.
After submitting documents, a citizen must wait for the application to be considered and a decision made on it.
Obtaining a supplement when receiving a survivor's pension is faster and easier, since the requirement for automatic allocation of social benefits to the minimum subsistence level is enshrined in law.
So, if a person’s pension is below the minimum subsistence level, then it is necessary to contact the social authorities of local authorities and demand an allowance. It is necessary to come to the PFR branch and apply there with a statement about the need to increase state support.
Our country provides for increased state security for those who postpone their retirement for five years. A factor of 1.5 is established for them. All this time, a person will receive only wages (if he is engaged in official labor). Citizens who decide to postpone retirement for ten years will receive a double pension.
Pensioners who do not engage in official labor
Raising a pension for old-age pensioners is a very socially acute issue. Citizens of this category in the near future will be affected by legislative changes. An increase in old-age pension will occur once, in the first month of the year. Previously, payments were indexed twice a year - on the first of February and the first of April. So, for example, in 2017, indexation was first at 5.4 percent, and then again at 0.38 percent. This year, the second increase was canceled at the legislative level.
An increase in the old-age pension for unemployed citizens of our country will occur from the first month of this year. The size of the increase will be 3.7 percent, which will be approximately four hundred rubles. The old-age pension increase ratio in 2018 will exceed the annual inflation rate. According to statistics, in the first three quarters of last year, it amounted to three percent.
Despite the fact that the increase will be greater than the official inflation rate, in monetary terms, the increase in pensions for pensioners is still small. The question was raised at the state level, but so far no other changes other than those described in the article are expected.
Social retirees, how is the issue of indexation solved
Raising pensions for people with disabilities is the most painful issue in terms of protecting the most defenseless citizens of our country. More than four million citizens receive social benefits in Russia: people with disabilities, war veterans, children left without a breadwinner and a preferential category of citizens who have not earned the length of service required by law. For these pensioners, an increase in pension in 2018 will occur by 4.1 percent. It is worth noting that this indicator is also higher than the annual inflation rate. Currently, the average pension is eight thousand seven hundred forty-two rubles, that is, the increase in pension will be approximately three hundred and fifty rubles.
A social pension for children with disabilities from childhood is paid in the amount of thirteen thousand two hundred and forty-one rubles.
Recall that all categories of citizens whose benefit is below the minimum subsistence level are entitled to increase pensions at the regional level in the form of social benefits. In 2017, several million people applied for it to the relevant authorities.
Working pensioners
Will there be a pension increase in 2018 for working pensioners? This is the most pressing issue today, because a few years ago the government introduced a moratorium on increasing state social benefits for this category of citizens.
The size of pensions in our country is still low, so a third of the elderly population continues to work in their jobs. Fourteen million retirees are working. Raising pensions for this category of people is not provided.
Eleven million retirees who continue to work will not receive benefits at the beginning of this year.
For two years now, working pensioners have been accruing insurance payments without indexing. When a working citizen ceases his professional activity, he begins to receive state support in full, taking into account all the increases for the period of his labor activity. Typically, citizens have to wait several months for them to start paying pensions based on indexing. During the waiting period, people lose their money. This year it should stop. Citizens should start receiving a correctly calculated pension from the first month of termination of work.
How is pension calculated for working citizens
The question of raising pensions for workers in 2018 is of concern to all working citizens. Indeed, in our country, people after reaching retirement age, as a rule, continue to work and consider pension as an additional income to their main income. While the citizen is officially working, the employer pays insurance premiums for him, which translate into pension points. Last year, one point was 78.58 rubles, and this year - 81.49 rubles. The longer and more the employer makes insurance premiums for the employee, the more the citizen earns points. Today, there is a ceiling in the amount of a conditional pension increase of three points or two hundred and forty-five rubles.
The current pension reform provides an opportunity to postpone retirement. For this, in the future, when calculating cash payments, a raising factor will be applied. The calculation formula is available on the PFR website.
How much will the pension increase in the Ministry of Internal Affairs
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Payout Indexing
The monthly fixed payment for preferential categories of citizens will be increased by two and a half percent. An increase in pensions for pensioners in 2018 suggests that from February 1 of this year, a part of payments to citizens belonging to the category of beneficiaries will be indexed. The same indexing expects a set of social services. The increase in subsidies will be for the following expenses:
- Medicines in the amount of eight hundred twenty eight rubles fourteen kopecks.
- Travel in the amount of one hundred eighteen rubles and ninety-four kopecks.
- Sanatorium-resort treatment in the amount of one hundred twenty-eight rubles and eleven kopecks.
Conclusion
Raising a pension for pensioners will always be a socially hot topic in our society until it reaches a level at which an elderly person can afford to live in abundance. We all perfectly understand that pensioners in any state, including in our country, are the most vulnerable social group from a financial point of view. Raising a pension for pensioners in 2018 is the next step in the state’s attempt to ensure a decent life for its old people.