Recently, the question has become relevant: what does it mean to “freeze” the funded part of the pension? Within the framework of the article, an answer to it will be analyzed, and also a forecast will be given on what to expect in the near future.
general information
In the Russian Federation, the pension system is based on two main components: insurance and funded parts. The first was inherited from the time of the Soviet Union. The second component was put into operation since 2002, when the pension reform was launched. What caused this strategy?
In the Soviet Union, a relatively low life expectancy was observed (compared to the modern one). At the same time, there were quite a few children in the families, which is why the number of working generation exceeded the number of pensioners. With current trends, this no longer brings past effects. Therefore, it was decided to do the following: working citizens pay contributions to the pension fund. All the money goes to pay retirees.
Given that aging is continuing and the number of employees is declining, there are not enough funds to make payments. This problem was partially solved thanks to budget transfers, but amid falling income from export items, there was not enough money.
What was decided to do?
The meaning of the pension reform was to gradually move to a funded system. In such cases, payments for old age will depend not on the state, but on the employee. And who is entitled to the funded part of the pension? To someone who has a desire to formalize it and was born after 1967. But as soon as the funded part of the pension of retirees (both already held and future) became a substantial amount, the government succumbed to the temptation to use these funds to solve existing problems.
And now we come to the part that interests most people. We will now understand what it means to “freeze” the funded part of the pension. This was first announced in 2013. Then the growth of the economy of the Russian Federation began to slow down. The ruble went into the devaluation stage. The decision to transfer the funded part of the pension to state jurisdiction helped the government find an additional 243 billion rubles in 2014, albeit at that price.
Continued use of such a mechanism
In the fall of 2014, they decided on the need to extend the moratorium on freezing pension savings for 2015. This maneuver allowed to get 307.4 billion rubles. Thus, the foundation was laid for the withdrawal, in the literal sense of the word, of money that had been postponed for the future. Why such a formulation, we will now understand.
The funded part of the pension at the NPF and at the State pension fund is used to cover current expenses through future payments. Of course, compensation is provided for on paper, but how it will be implemented is a big question. One can cite the words of Nikolai Platoshkin, a professor at Moscow University for the Humanities, that pension reform has failed. Something similar could be observed earlier, when the responsibility for the future of people was literally shifted to them.
Why did it happen so?
So, now we know what it means to “freeze” the funded part of the pension. Let's look at the causes of this situation. If you quote the words of the same Platoshkin, then he believes that the root of this situation lies in the following:
- Employers did not pay extra to the Pension Fund of the Russian Federation.
- The state, instead of tightening the requirements for business responsibility to reduce the planned and real budget, decided to confiscate the savings from people.
Moreover, Platoshkin believes that raising the retirement age is only a matter of time. After all, the problems remain unresolved, while the country is constantly faced with new challenges.
Is everything so bad?
Let's look at everything critically. At one time, Deputy Prime Minister Olga Golodets said that due to the introduction of a moratorium on the formation of savings, none of the citizens of the Russian Federation will suffer. All funds that are now taken by the state are credited to people's accounts, and pension capital will be formed on the basis of them. The only difference is that it will be carried out through the insurance system. She is echoed by the head of the FIU. But here a few facts are alarming:
- Initially, the freezing was planned exclusively for 2014.
- In reality, now it is extended to 2019.
- A funded pension is essentially investment capital. And its removal does not contribute to the acceleration of economic growth.
This, however, could be understood by looking at the scenarios of the macroeconomic forecast provided by the Ministry of Economic Development.
Which is better: specifics and features
The insurance part is growing solely due to indexation, which is carried out by the government. Accumulative same increases due to investment income. To say for sure which option will allow you to get more profit in 30-40 years is now problematic. But the funded part has serious advantages.
To begin with, it should be noted that it can be inherited. In addition, a lump sum payment from the funded part of the pension may be requested. True, there must be good reason for this. A lump-sum payment from the funded part of the pension may be issued at the death of the person for whom it was collected, or in the case of a serious illness. But for this it will be necessary to run around with papers, it is possible that in the courts. Also, if you have two points of support, this reduces the likelihood of a negative situation, and when it occurs, you can minimize losses.
Conclusion
So we figured out what it means to “freeze” the funded part of the pension. Finally, I want to give a little advice. You should not concentrate solely on an organization such as a pension fund. The funded part of the pension is, in fact, a very specific investment portfolio. You can direct this money to the concentration of a separate block of securities not controlled (in this sense of the word) by the state. And it is possible to act differently - to invest all available funds in children. After all, properly educated children are also a kind of investment, which will also be more reliable than state support.
Do not forget also that now (so far) there are various programs like maternal capital. And while there is an opportunity - it is necessary to use it. After all, no one can take care of us better than ourselves. It is necessary to remember this truly golden rule. And the pension, which is awarded by the state ... Well, if it does, then it can be considered a good addition to old age, which will make the last years on this land more or less enjoyable.