Pension insurance in Russia: obligation or good will of everyone, individual account of the insured, private pension programs, development prospects
Almost every young man expects to receive material support from the state in old age. However, such a cash payment, called a pension, can be different in size and depends on a number of individual factors.
Pension insurance is the foundation on which to build the entire system of organization of payments for old age. And it is precisely it that is called upon to provide replenishment of the fund from which money is taken for payments.
Pension insurance mandatory for everyone
According to the law, compulsory pension insurance applies to all categories of the population, without exception. All Russians must have an individual account with the Pension Fund.
As part of compulsory pension insurance, employers must transfer monthly contributions to the account of each employee in the Pension Fund, and the amount of the old-age allowance for a given person depends on their total amount.
The funds transferred do not lie in the PF as a dead weight, they are invested and participate in financial projects, which additionally increases the amount accumulated by the insured person and constitutes the so-called funded part.
The state management company Vnesheconombank manages these funds. All money from the funded part of the mandatory pension insurance fund is redirected there by default. Those who agree with such a decision were even given the corresponding name – “silent”.
More active people who are interested in pension insurance and their personal benefit in accumulating funds have the right to choose their own investment option.
They can entrust their savings to one of the non-governmental financial institutions: a management company or a pension fund. The risk of cooperation with such organizations is higher, but the profit may be significantly greater.
Income from such investments will make it possible to receive a higher lifetime pension in old age.
All about personal account
In Russia, compulsory pension insurance assumes that a working person has an individual PF account. It reflects all the data about who, when, how much money was deposited in the piggy bank of this citizen.
The employer acts as the insurer in the compulsory pension insurance (or several if the insured person changes his job). It is the current employer who is obliged to transfer contributions every month to the personal account of each employee, depending on the amount of his earnings.
When registering with the Pension Fund, all citizens receive a SNILS card, can register on the State Services website and check the information of interest to him that affects pension insurance through him. In particular, he can see whether contributions are regularly paid for him and in what amount.
Voluntary contributions – additional support in old age
In addition to the mandatory form prescribed by law, there is also voluntary pension insurance. It is based on the same principles and provides for the accumulation of funds for future retirement through various financial campaigns.
But there are some differences:
- This is only an additional opportunity to increase retirement without canceling compulsory pension insurance.
- The insured person or the insured themselves choose the conditions for payment of contributions, their size.
- For voluntary pension insurance, an insurer is considered to be a non-state pension fund selected by a citizen or a company providing a similar service.
- In voluntary pension insurance, the role of the state is reduced only to maintaining control over the insurer.
Today, a number of voluntary programs are offered, and a citizen can choose what suits him best. The contribution can be made at a time, but more often customers choose the funded option with payment once a year, quarter, month.
As for payments, voluntary pension insurance provides for the implementation of remittances by agreement: monthly, semi-annually, and other options, but when a person reaches the right age.
Depending on the specific contract, the pension is paid throughout life or only during the period specified in the contract.
Statistics from past years show that voluntary pension insurance in Russian insurance companies has its own prospects. For example, in 2014, citizens entrusted more than 1.6 billion rubles to Russian insurers. For the same year, of these funds, benefits were paid in the amount of about 579 million rubles.
The state strictly monitors companies engaged in voluntary pension insurance. Insurance reserves and their placement are closely monitored by the Central Bank of the Russian Federation. This confirms the reliability of such an option as cooperation with insurance companies.
Voluntary pension insurance is practiced in many countries. It provides people with material support in old age. Moreover, its size in this case does not depend on the state, but is dictated only by personal considerations and the capabilities of the person himself.
The best option to further increase your future pension is to apply to non-state pension coverage. Previously, this option was often used in large enterprises where special programs of a corporate and individual nature were used.
Today, this is mainly done by non-state pension funds. They offer various insurance products to organizations and the public.
Cooperation with such a fund has the following features:
- This is a voluntary decision of the policyholder / insured.
- This is not a substitute, but is considered as an addition to the option provided by law.
- An individual approach is practiced here, taking into account age, salary, and other nuances.
- The amount of contributions and the frequency of their payment is established individually, based on the possibilities and wishes.
- Reserves are invested in various projects, which brings income to the insured. The percentage does not depend on the size of the contribution.
- There are tax deductions and the ability to return 13% of the amount transferred to the fund.
- Accumulations after the death of the owner do not burn out, but are inherited without tax.
Pension insurance is available to any Russian. From the age of 18, he can write a contract with any non-state Pension Fund and begin to independently form a future pension. Moreover, a person is not obliged to work and have seniority.
In European countries, pension insurance is undergoing reform.
Transformations take place in three important directions:
- Improvement of the system: a fight is being conducted with tax evaders, the shadow business, the retirement age is being increased, the minimum length of service required for calculating payments is being increased, and the benefits for which a pension can be received ahead of schedule are being reduced.
- Increase in the pension minimum: most Europeans, including Russians, approach the poverty line in old age, so the minimum amount of benefits is regularly increased.
- Elimination of risks that exist when applying to non-governmental pension institutions: control over private pension funds is strengthened, the most reliable financial instruments for public funds are selected.