The amounts offered by the state as pensions do not always meet the expectations of citizens going on a well-deserved rest upon reaching a certain age. By studying the legislation, you can discover several interesting points that will help improve your financial situation, which comes along with pension privileges.
The question is that for citizens who have already retired or are planning to do so in the near future, it is somewhat difficult to manipulate future contributions in their favor. All charges, privileges, concessions and rights have already been determined by the state. In this case, everything that a citizen has accumulated for the period before 2002 will be used to calculate pension savings based on length of service and average salary.
The calculation of the average salary is taken for any five-year period of time specified directly by the applicant based on his own preferences. Everything related to pension contributions after 2002 is money transferred by the employer as mandatory insurance contributions.
In any case, this article will be useful not only to those who do not even think about their own distant retirement years, but also to those citizens who already see prospects for a retirement future in the near future.
Improving pension security for those who are just preparing for retirement
In 2013, one of the Federal Laws determined the right of every pensioner to choose a method for calculating work experience.
There are few options:
- According to the new rules defined by law just in 2013.
- The old way, without taking into account the innovations of Federal Law number 400.
When recalculating pension payments, a citizen does not lose a single penny of his payments. After recalculation, the received amounts are compared and the one whose value is greater is paid. This option is best chosen shortly before retirement. Check future deductions and choose the calculation method that will lead to greater income.
How EDV will be increased in 2021
From February 1, there will be an indexation of the amounts of monthly wages, social tax and other payments for federal beneficiaries. The indexation coefficient was determined in accordance with the actual consumer price growth index for the previous year. There is no exact data on the increase yet, but the plans are for an increase of 3.7%.
- For disabled people of the first group, the daily allowance will increase from 3,897 rubles. up to 4,041 rub.
- For disabled people of the second group and disabled children, payments will increase from 2,783 rubles to 2,886 rubles.
- For disabled people of the third group, the daily allowance will increase from 2,228 to 2,310 rubles from February.
Improvement for pensioners with “experience”
Those who have been supported by the state for a long time should not despair. The updated legislation provides for the recalculation of some periods of work experience according to the new rules.
You can try another method in practice. It consists in the fact that a pensioner can apply to the Pension Fund with a request to temporarily suspend the payment of security, or delay the registration of retirement. This can be done even if the pension is already transferred to your accounts.
According to the Federal Law mentioned above, citizens who voluntarily agree to postpone the assignment of pension payments, as well as those who temporarily decide to suspend payments for a certain period, receive the right to review the accrual of pension points. Among other things, it increases the final amount that is considered fixed for the pension provision of citizens of the country. Details of these manipulations are described in Articles 15 and 16 of the Federal Law of 2013.
The main thing about increasing pensions in 2021
Let's summarize.
- Insurance pensions for non-working pensioners will be indexed by 6.3% from January 1, 2021.
- EDV, NSU and other payments for federal beneficiaries will increase from February 1 to the inflation rate, that is, 3.7% (preliminary).
- Social pensions will increase by 2.6% from April 1, 2021 (preliminary).
- In August, the funded pension increases, and participants in the pension savings co-financing program will also receive an increase.
- From August 2021, pensioners who worked in 2021 will receive a pension recalculation of no more than 296 rubles.
- Starting from October 2021, pensioners of law enforcement agencies - the armed forces, the Ministry of Internal Affairs, etc. - will receive an increase. The growth, according to preliminary data, will be 3.7%.
Positive and negative aspects of this action
The biggest disadvantage of a non-working older citizen refusing to be provided by the state will, naturally, be the lack of a permanent income. In this case, such a step can be taken only if you have complete confidence in your own resources. It is also necessary to take into account the fact that, by refusing all pension payments, a citizen will not be able to count on various types of social assistance that he is entitled to:
- social payments;
- allowances for old age or other reasons.
That is, by refusing a pension, a citizen does not have the right to apply for other social assistance from the state. Medicines, travel, benefits and additional benefits - all this will have to be temporarily forgotten. But there are several positive aspects of this choice of further actions:
- Any citizen can apply for such a step without restrictions;
- the final pension amount will actually increase.
Having weighed all the pros and cons, any citizen will understand that it is better to turn to such relationships with the state, having a regular income, still continuing to work, acquiring even more experience, a larger number of pension points. Insurance premiums paid are taken into account, as is the increase in the pension coefficient.
We should not forget about the annual recalculations carried out at the end of summer by the social services responsible for providing pensions to citizens.
Recalculation of pensions in August 2021 for working pensioners
Recalculation of pensions for working pensioners is usually carried out from August 1.
Pensioners who worked in 2021 will have their insurance pensions increased in August 2021 (non-declaration recalculation) based on the pension points accrued for 2021.
However, as usual, not all salary will be taken into account.
The maximum increase will be equal to the monetary equivalent of 3 pension points. If we consider that the cost of the pension coefficient in 2021 is equal to 98.86 rubles, then it is easy to calculate that the maximum increase in pensions in August 2021 will be approximately 296 rubles.
There is no need to apply for a promotion anywhere. Recalculation will be done automatically.
Other ways to increase pensions for pensioners
Above were reflections and specific actions regarding those citizens who are already considered pensioners, or will soon become so. What can be advised to those who are too early to think about quiet, non-working days, not limited only to vacation?
Here are some smart tips for those who want to count now on an increased size of their own future pension:
- The main criterion contributing to the high importance of pension provision in the future is full transparency of one’s own income and reporting on it to the state. The so-called “white salary” is the basic amount against which insurance contributions are deducted by the employer.
- You need to decide on your own how to calculate your future pension. Choose the option with only an insurance pension, or do not give up the funded part. If a citizen refuses the funded part of the pension, the number of pension points accrued to him will be increased, as well as the value of the insurance part of the pension.
- Naturally, it is worth taking a timely interest in all changes in the country’s legislation relating to pensions.
Transparency of issued legislative acts, availability of consultations on the global network, simple literacy - all this will be a help in life.
You can simply wait for the moment when the state-defined age for retirement arrives, come to terms with the accrued benefits and, without waiting for changes, live your future life. Or you can choose a slightly different position regarding your own future.
It is important to understand that the size of a future pension is not a constant value and can be increased by all sorts of legal means.
Increase in social pension in 2021
In addition to the old-age insurance pension, our country also has the so-called “social pension”. It is received by men and women who have reached 70 and 65 years of age, respectively, as well as disabled people.
It is planned that state pensions, including social ones, will increase by 2.6% from April 1, 2021 - in accordance with the increase in the cost of living of a pensioner for 2020. The exact amount of indexation will become known only at the beginning of the year.
For now, it is planned that the average social pension after indexation will be 10.1 thousand rubles. The average social pension for disabled children will increase to 14.8 thousand rubles, the social pension for disabled children of the first group - to 14.9 thousand rubles.
By the way, it is planned that in 2022 the increase in social pension should be 3.9%, and in 2023 - 3.7%.
Indexation of payments in 2020
Every year the state slightly but regularly increases pension payments. This upgrading process is called indexing. Previously, indexation was not high and was calculated based on inflation in the country. But since the pension period was increased, payments also had to increase. From January 1, 2021, the amount of payments to senior citizens was increased by 7.05%, which is almost double the previous indexation amount. We also fixed a certain amount of indexation for the next couple of years. Pensions increase due to the fact that the pension point becomes more expensive and the fixed amount of the pension increases.
From January 1, 2021, payments to unemployed senior citizens were increased. Non-working people are considered to be those elderly people who are not insured in any insurance systems. Neither the employer nor he himself pays contributions for this citizen. This is how the state is trying to provide support to older people who do not receive salaries and who have no other payments other than pensions.
From 2021, payments to unemployed senior citizens will be indexed by 6.6%. This indexation coefficient was fixed a year ago, with an increase in the retirement age. Formula for calculating pension:
Number of odds x Price of one point + Fixed payout.
Basically, the pension increase is based on an increase in payments in two parts:
| Components of a pension | How does the increase occur? |
| Fixed part | This amount is assigned to all citizens of retirement age, regardless of the points they have accumulated during their work experience. In 2021, it was equal to 5334.19 rubles, and with indexation of 6.6% in 2021, the amount increased to 5686.25 rubles. |
| Pension points | While a citizen is working, points accumulate on his personal account. Their number depends on the contributions that are withheld from a person’s income. The largest number of odds that could be accrued in 2021 is 9.13. By the time you retire, a certain number of coefficients have accumulated in your account. For each of them, the state assigns a monetary equivalent: in 2021, 1 coefficient cost 87.24 rubles, and in 2021 - 93 rubles. The indexation percentage was 6.6. |
Due to the increase in these two parts, pensions for senior citizens increase.
New rules for retirement in 2021
From 2021, the conditions for the start of retirement age for senior citizens have been changed:
- Until July 2021, retirement age begins for women who are 55.5 years old and men who are 60.5 years old. In the second half of this year, according to age, no one will become a pensioner.
- To retire, you must have at least 11 years of work experience and a pension score equal to or greater than 18.6 units. This exceeds the norms that were in effect in 2021.
- For those who, according to the old rules, reached retirement age in 2021, pensions will be accrued only from July 2021 or in the first 6 months of 2022.
- Mothers with many children have access to early retirement, but they still won’t be able to take advantage of the benefits.
The retirement age is not raised immediately; this process occurs gradually. The age for residents of the country will be increased by a year until 2023.
