Average pension in Russia - how to live and what to expect?

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Published: March 25, 2016

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Now the pension reform is going through a peculiar process of adaptation, but there are already tangible results.

The planned indexation made it possible to increase payments to people who retired. The priority continues to be the low-income population.

• Average pension figures
• Living wage in regions of Russia
• How to increase the minimum pension?
• How can you increase the minimum pension?
• Story. Time travel
• Average pension in other countries of the world

Average pension figures

Social pensions are indexed annually; on April 1, 2016, the amount rose to 8,562 rubles . It is worth noting that the legislation does not contain the concept of “minimum pension”. It is customary to compare it with the cost of living, which is different in each region of Russia.

The average pension in Russia in 2021 will be equal to 13,700 rubles (pension with various additional payments and allowances). The positive dynamics continue. The figure increased significantly compared to last year, but still could not exceed the expected amount. Initially it was planned that the average pension would be 13,700 rubles.

It is worth noting that pension growth is like a speed competition. The figure grew almost twice as fast as price inflation for consumer goods.

To consolidate the results, the government will have to index payments, otherwise the achievements will be leveled out.

Siberian affairs

New data regarding the cost of living in the Novosibirsk region have been published. For pensioners, the minimum amount was 8,300 rubles. At the same time, statistical authorities explain how this figure was made up. 40% of the amount falls on the purchase of food products, non-food products accounted for about 25% . Paid services also took up a quarter of expenses. The remainder went to taxes.

PMP has also been installed in other cities of Siberia. For example, the minimum old-age pension in 2021 from January 1 in Omsk is 8,217 rubles. The figure exceeds the 2021 figure by almost 20%. This is the most significant increase in pensions in the country among other regions.

Pension in St. Petersburg.

Despite the fact that the Northern capital, like Moscow, is a city of federal significance, the standard of living in these cities is strikingly different. For example, the cost of a square meter of residential space in Moscow is more than twice that of St. Petersburg. The same applies to costs in the service sector. Speaking of social payments, the minimum old-age pension in 2021 in St. Petersburg will remain virtually unchanged and will be about 8,400 rubles. This is 3 thousand rubles less than Moscow standards.

Positive changes await residents of the Perm Territory - an increase in pensions by as much as 250 rubles is coming. And this is not irony. This amount can be significant for many pensioners, because they literally put their pension into pieces.

Kamchatka has the highest level of minimum pension. There its size exceeds 15,500 rubles. Of course, this figure is due to the characteristics of the region. In general, all established pensions are in one way or another proportional to the standard of living of the place where the citizen lives and are made up of the same needs of the population.

Having analyzed the established levels of the living wage for pensioners for 2021, it is easy to note that they lag far behind the average level of earnings of the working-age population . In many regions this level exceeds 30,000 rubles. Unfortunately, even in those regions of the federation where there is a tendency towards a slight increase in the level of pensions, citizens of retirement age are teetering on the brink of poverty. It is especially difficult for single elderly citizens suffering from various ailments that require expensive treatment. Most old people lose their breath for a minute at the moment when the cashier announces the amount to be paid. Convulsive calculations in the head, shaking hands and milk bags with change - a typical picture of a Russian pensioner.

It is still difficult to talk about rosy forecasts, but the expenditure part of the federal budget contains a fairly significant item allocated for reforming the pension system. It is known that experts took the Australian model as a basis. How successfully it will take root in the country and whether it will be able to improve the standard of living of 30% of the population - pensioners - only time will tell.

Living wage in regions of Russia

In the Russian capital, this figure is 10,823 rubles (for pensioners).
Each region has its own numbers, and as a result, its own pension benefits. In the Northwestern Federal District, in particular in the Nenets Autonomous District, the cost of living is 15,837 rubles. The same figure for pensioners in Chechnya is 8,171 rubles; residents of the Rostov region will need 7,869 rubles. In the Republic of Bashkortostan the cost of living is 7,061 rubles, while in the Khanty-Mansi Autonomous Okrug it is 11,459 rubles.

The minimum in the Siberian District is a little more than 8,000 rubles; in the Far East, the highest figure is for residents of Chukotka, exactly 14,090 rubles.

Pensioners of the Republic of Crimea do not stand out from the general population; here the living wage is set at 8,033 rubles.

Minimum disability pension

The social pension is assigned to disabled citizens permanently residing in the Russian Federation. This includes disabled people of groups 1, 2 and 3, including those disabled since childhood, as well as disabled children. As is known, pensions for disabled people are calculated based on the disability group. This allows pensions to be increased for those with a disability group higher than the degree of disability.

The fact of paid labor activity does not affect the payment of a social pension, with the exception of the social pension assigned to citizens who have reached the ages of 65 and 60 years. According to the draft budget of the Pension Fund, for 2021 the average old-age pension, which most Russian pensioners receive, will be 13.4 thousand rubles, for disability - 8.7 thousand rubles, and for the loss of a breadwinner - 9 thousand rubles.

How to increase the minimum pension?

It is important to understand that if the pension is below the subsistence level, then the person has the right

for social benefits. These payments are designed to equalize the pension and the cost of living established in a certain region of the country.

The required insurance period to receive a minimum pension will gradually increase until 2024, and now it is six years.

Social pension in 2021

In order for a pensioner to be eligible to receive a social pension in 2021, he must have more than five years of work experience. If the total amount of length of service is not accumulated, then the reason for calculating the minimum social pension may be the achievement of a certain age:

• For men, this age is sixty-five years;
• For women, this age is sixty years;

Indexation of social pensions occurs in the same order as indexation of labor pensions. For example, in 2021 pensions increased by 5.5 percent. It is also worth noting that in the same year the minimum pension increased by forty-two percent for the following categories of citizens:

• Disabled people of the second group;
• Children who are left with one parent;
• Men who have passed the age of sixty-five and women who have passed the age of sixty;

Story. Time travel

It’s scary to say that back in 1999 the average pension in Russia was 449 rubles, a year later it grew to 700 rubles, and in 2005 this figure was 2,538 rubles. Taking into account inflation, in dollar terms, from the beginning of 2000 to 2012, the size of pensions increased fivefold .

Average pension in Russia over the past 11 years:

Time-based wages - what is it and when is it profitable to use it? Find out more about salary transactions in our material!

You can find out how sick leave is paid if it falls on a weekend by following the link.

What will be the pension for citizens with high incomes?

READ ON THE TOPIC:

The new pension system is not being discussed in the government.
Authorized persons explain that citizens with a monthly income of about 100 thousand rubles will also receive pensions in Russia.
Deputy Finance Minister Alexei Moiseev previously said: “No state system can ever afford to pay a replacement rate of 40 percent to a person who received 100 thousand rubles during his lifetime. It doesn't happen that way. A person who received 100 thousand had to save for his own retirement.” At the same time, the official noted that this provision applies to citizens earning more than 40 thousand rubles.

This idea was supplemented by Assistant Deputy Minister Svetlana Nikitina: “The Ministry of Finance is only talking about an additional savings component, which can be formed through banks or through non-state investment funds. Voluntarily. So that this is some kind of pension capital. We are not touching the current pension system, which consists of mandatory payments.”

The authors of the project adopted this idea from the Australian pension system, within which citizens make monthly contributions to a special fund in the amount of up to 8% of income. If the amount of contributions for the year is 1 thousand dollars, then the state additionally transfers half of this amount to the citizen’s account. In addition, $1,000 is transferred annually to the account of each citizen participating in the program.

Who is entitled to additional payment?

The above figures are the amount of the minimum labor pension. Insurance benefits may be increased if the retiree meets one or more of the following requirements:

• age from 80 years;
• long work experience;
• the amount of payments is less than the subsistence minimum for a constituent entity of the Russian Federation or the entire federation;
• falling into a preferential category (disabled, former military);
• special merits (cultural figure, WWII veteran, hero of labor of the USSR or the Russian Federation);
• the presence of relatives on full financial support.

Additional payments that are accrued in accordance with length of service or the availability of preferential rights should be considered separately. Next we will talk about the federal or regional allowance.

Federal and regional supplements to the insurance pension are the amount that can be received if the pension in the region of residence is lower than the federal figure. In this case, the pensioner is paid the difference between the two figures. Non-working persons receiving an old-age pension have the right to such additional payment.

Required package of documents

Before collecting papers to receive additional payment, you need to make sure that the pensioner really has the right to it. It is necessary to compare three values: the federal PMP indicator, the regional one, and the size of the pension. The living wage for a pensioner in Russia is 8,726 rubles. You can find out the amounts by region from the Pension Fund or social security authorities.

If, based on the results of the comparison, it turns out that insurance payments are lower than the regional or federal indicator, it is necessary to collect the following package of documents:

1. Passport.
2. SNILS.
3. Application requesting payment of an allowance. The forms differ depending on the type of surcharge (regional, federal).
4. Pensioner's certificate.

No other documents need to be provided. The authorities that are considering the application must independently collect additional information from other government organizations.

Where can I apply for a pension increase?

You can apply for a supplement to several different authorities. Documents must be submitted to one of the following authorities:

1. Social protection. Here you can achieve a regional premium. It is due if a pensioner receives payments below the PMP in the region, but above the subsistence level in the country.
2. Russian Pension Fund. The federal increase is processed here. It is received if the pension is lower than the minimum wage both in the region and in the country as a whole. In your Personal Account on the website of the Russian Pension Fund es.pfrf.ru. There is a service for assigning a federal social supplement to pensions. To receive this service electronically, you must have a confirmed account on the government services portal (gosuslugi.ru).
3. MFC. In multifunctional centers at your place of residence, you can apply for both types of additional payments. Before visiting an organization, it is recommended to check whether this type of service is provided. This can be done via the hotline.

Processing the package of documents takes approximately 1 month, regardless of the authority where the pensioner went.

Living wage for a pensioner.

In general, in Russia the very concept of “the size of the minimum pension” is more common in the people. In fact, it often refers to the living wage of a pensioner. It consists of the so-called necessary set of things, products and services that a person must purchase monthly to maintain existence. According to forecasts, in 2021 the PMP will be about 10 thousand rubles across the country. Of course, these are averages. There is a direct dependence of PMP on the region. For example, the minimum old-age pension in 2021 in Moscow will be 11,561 rubles. This amount exceeds the same amount last year by 133 rubles. At the same time, in Tatarstan PMP is only 8,000 rubles.

Minimum pension size by region

Recently, the authorities approved the minimum subsistence level for a pensioner, depending on the subject of the federation. Thus, the minimum old-age pension in 2021 in Volgograd will be 8,535 rubles. This means that all citizens of retirement age whose income is less than the specified amount will receive additional payments.

If in some regions the value of the pension minimum is increasing at least slightly, then the minimum old-age pension in 2021 in the Krasnodar Territory, on the contrary, will decrease. This is explained by the fact that this value is set for the planning period based on calculations and forecasts. In reality, everything may look different. At the end of 2015, the established PMP for the Krasnodar Territory for 2016 was 300 rubles higher than expected. Therefore, next year the Ministry of Labor decided to reduce it to 8.5 thousand rubles.

On October 20, a meeting of the Legislative Assembly of the Rostov Region was held, at which the minimum old-age pension was determined in 2017 in the Rostov Region. Contrary to the intentions of the federal authorities to reduce the size of the pension by almost 200 rubles, local authorities did not support this measure and kept the PMP at the same level - 8 thousand 488 rubles. Of course, the surcharge rule applies everywhere. Those who do not receive the specified minimum can count on budget help. Of the more than a million Rostov pensioners, about two hundred thousand citizens currently receive the supplement.

Meanwhile, even despite maintaining the same pension amount, the standard of living of old Rostovites will decrease - this is due to the increase in the consumer price index. Already, it has amounted to more than 5% for 2021, and by the end of the year it could reach 7%.

The amount of the minimum pension in the Russian Federation

Free in Russia

According to the Federal Law “On Social Assistance from the State,” an unemployed citizen cannot receive payments the amount of which is less than the PMP.

It must be said that depending on the standard of living of citizens and prices for necessary goods and services, the difference between PMP in different regions can be enormous.

If a Russian’s pension does not reach the PMP level, he may receive an additional payment, since the law does not allow pension payments to be lower than the PMP. The citizen will receive an additional payment, even if there is not enough money in the regional budget - it will simply be allocated from the state treasury.

Since the main income of older people, as a rule, is a pension, the issue of the size of the minimum benefit is of interest to a large number of citizens.

Often officials give rather vague answers, promising to raise social standards as soon as the economy becomes more stable and energy prices rise on world markets, but they usually add that there is no extra money in the treasury today.

Therefore, in this article we will try to figure out what determines the size of various types of pensions, including by region.

What determines the size of pension provision?

Today, citizens of the Russian Federation who do not have enough length of service to accrue a labor pension are entitled to a minimum old-age pension.

The procedure for calculating this social benefit is regulated by Russian Government Resolution No. 166.

According to this legislative act, the minimum pension is due to the following citizens :

• women over 60 years of age and men over 65 years of age with no more than 5 years of experience, which must be confirmed by entries from the work record book;
• representatives of small nationalities of the Far North (women - from 55 years old, men - from 60).

This year, several innovations in pension legislation will come into force in the Russian Federation. For example, in the second half of the year, pensioners will receive state benefits under a system based on the Australian pension legislation scheme.

Life will tell whether this system will be successful. But experts are already predicting a decrease in labor pensions by 10.5% for citizens who were born after 1967 due to a number of incorrect measures regarding pensions. For example, pension savings frozen three times, although they saved a certain amount of money for the government, at the same time led to a deficit of more than 1.5 billion rubles this year. in the form of prolonged investments. Because of this, the growth rate of production has decreased, which cannot but affect social benefit payments.

Minimum payout amounts

The legislation of the Russian Federation does not contain the concept of a minimum pension, since its value is determined by various circumstances: the economic situation in the state, inflation, and so on. But at the same time, the state guarantees that the “minimum wage” in old age will be no less than the subsistence level for pensioners. Last year, its average value across regions was 8,803 rubles.

It is noteworthy that the regions independently set the lower threshold based on the subsistence level in their region and assess the corresponding social supplements.

According to PF data, the average amounts of different types of pensions since February last year are:

• for old age - about 13,700 rubles;
• social — 8562 rub.;
• disabled children - 8,790 rubles;
• for disability received due to military injury - 30,700 rubles.

Currently, the minimum pension does not correspond to the minimum subsistence level. For this reason, pensioners are usually paid from regional budgets an amount that covers the difference between the minimum pension and the regional subsistence level. The amount of the surcharge depends on the pensioner’s place of residence.

Social benefits are calculated after the pensioner submits a corresponding application. However, working pensioners are not entitled to social benefits. To receive benefits, documentation of the established form is required; it must be presented to the Pension Fund office at the place of residence.

An increase in the minimum pension is possible if the following factors arise:

• the citizen is 80 years old;
• the pensioner has one or more dependent relatives;
• indexation of insurance pension;
• a pensioner starts working.

At the beginning of 2015, significant changes were made to pension legislation - two new types of pensions appeared: funded and insurance .

The latter is divided into three types :

• for old age: due from 60 and 55 years old for men and women, respectively;
• for disability: accrued to disabled children and citizens with one of the disability groups, regardless of the required length of service;
• for loss of a breadwinner: paid to full-time students under 23 years of age, as well as to minors.

It is worth noting that if a pensioner is entitled to several insurance benefits, then only the one chosen by him is accrued. Also, starting this year, the legislation regarding civil servants has been significantly tightened: every year the retirement age, as well as the minimum length of service, will increase by six months.

The amount of the insurance pension is calculated based on the following:

• total points - 9 or more;
• insurance experience - 7 years or more.

The innovations provide that the minimum length of service for calculating an insurance pension will increase by 12 months every year, and the number of points will increase by 2.4. For example, for those who retired on January 1, 2021, it is enough to work for 7 years, and for those who become pensioners in 2025, they will need to work for 15 years and still have at least 30 points. It is worth noting that the number of points is directly proportional to the amount of “white” wages.

A slightly different approach is used for calculating a disability insurance pension - when calculating it, the group, as well as the type of payments, are taken into account. The minimum amount of state disability benefit is 1.5–3 times greater than the social pension established in a constituent entity of the Russian Federation. At the same time, the accumulative part of the benefit is calculated based on length of service, deductions from wages, and so on. The amount of the insurance benefit is calculated using the formula for the working population: number of pension points × cost of 1 point (indexed every year) + fixed payment (also indexed).

Regional features

In 2021, the “minimum wage” for old age in Moscow for non-working pensioners should be at least 14,500 rubles. Moreover, they must live in the capital for at least 10 years. It is noteworthy that the Moscow authorities pay extra to those pensioners whose pension is less than 14,500 rubles. Similar systems operate in other subjects of the Federation.

The size of the “minimum wage” in the Russian Federation is determined annually based on the value of the pensioner’s subsistence level (PLMS) . Non-working pensioners whose total amount of benefits does not reach the GSMP in their region are paid a social supplement to their pension up to the GSMP. Let's consider this value in different regions of the Russian Federation using the table below.

As we can see, the largest value of EPMF, not counting the two capitals, is in Bryansk, Crimea and Krasnodar Territory. This is due to the specific characteristics of these regions.

It is currently not possible to calculate the exact amount of the maximum pension

The amount of the pension is influenced by a number of factors:

1. Salary amount.
2. Retirement age.
3. Period of work experience.
4. Amount of contributions to the Pension Fund.
5. Regional pension legislation.

According to the innovations, if a man or woman, having reached the appropriate age, does not retire, but continues to work, then they are guaranteed a significant increase in pension, proportional to the period in which they could have been retired. It turns out that the more a citizen works after crossing the retirement age line, the higher the size of his future pension.

Source

Number of pensioners in Russia by year (Rosstat data)

The growing number of retirees comes amid another trend. We are witnessing today a rapid decline in the working-age population. There are fewer and fewer citizens who would work and pay contributions to the budget.

Thus, the falling income of the Pension Fund today is not enough to meet all the needs of the growing number of pensioners. This is clearly visible on our sign. Back in 2013, the Pension Fund’s revenues exceeded the fund’s expenses, but since 2014 the situation has changed. Today, the Pension Fund’s money is no longer enough to provide for all the needs of pensioners.

Features of pensions for working pensioners

Working pensioners who have reached retirement age but continue to work are deprived of some privileges. Thus, they cannot use indexation of insurance pension payments.

While non-working people of retirement age will receive an increase of 7.05% of the previous amount, working people will be able to increase insurance payments by only 3 pension points. For 2021, the “cost” of one point is 81.49 rubles, that is, the maximum possible increase is 244.47 rubles. per month or 2933.64 rub. in year. This supplement will not cover the cost of living increases associated with annual inflation.

Also, working pensioners are deprived of the right to a federal supplement, which is provided to cover the difference between the pension and PMP.

If the pensioner finally retires, starting from the next month, as a result of recalculation, he will be entitled to an indexed payment. However, in fact, funds can only be accrued 3 months after leaving work. This time is necessary for Pension Fund employees to collect the necessary documents and recalculate. After the paperwork is completed, compensation is paid.