The modern pension system of Russia includes a certain type of savings, which are formed from the employer's transfers. Let's try to figure out what the insurance and funded part of the pension consists of.
What is included in future collateral?
The insurance and funded part of the pension is 22% of the salary of each employee. The funds go to the formation of a future pension, which includes insurance and funded components. Insurance accounts for 16%, and cumulative - 6%. The state spends the insurance part on payments to existing retirees and takes into account in the form of pension obligations on payments to future retirees. The insurance and funded part of the pension consists of all income transferred by the employer to the employee’s special account. The account number is indicated on the SNILS card. The state permits to increase accumulative savings by choosing management funds and companies.
The main components of a pension
Consider what are the differences between insurance and funded pensions.
Insurance:
- It is 16%.
- Directly depends on the full work experience and salary level.
- It is calculated by the Pension Fund according to a special formula (the quotient of the division of pension capital at the time of retirement and the number of months of future transfers; the minimum established by the state is added to the result - the base part).
- A person cannot manage money.
- Payment is made monthly after reaching the age specified by law (55 years for the female part of the population and 60 years for the male).
Cumulative:
- It is 6%.
- Depends on the level of wages and the period of monthly contributions.
- A person can manage it - transfer to any non-governmental pension fund or entrusting it to a management company, thereby further increasing the size of his pension.
How to save and increase accumulation
The insurance and funded part of the pension is formed throughout the entire working life of a person. Insurance savings are guaranteed payments of funds by the state depending on the length of service, and the funded component includes 6% of the employer's transfers to the pension fund from January 1, 2012.
Now any working person can choose the following options for managing cumulative security:
- Leave it at the State Pension Fund, entrusting the retention of the management company.
- Give preference to any responsible company, where the cumulative part of the collateral will be stored in the state fund, and the non-state pension fund having an agreement with the state fund will manage the funds.
- Savings savings are managed under the full control of private pension funds into which funds are transferred.
The accumulative and insurance part of the pension are mandatory components of a future pension. Any person can take care of mandatory provision by choosing the option of managing accumulated reserves that is suitable for themselves.