Are there plans to increase pensions in Russia from November 1, 2021?

Are Russians really expecting pension increases from November 1, 2018?

Some unscrupulous media outlets have disseminated information that on November 1 of this year, citizens who have retired and receive a pension from the state will be able to experience an increase in their own budget. In reality, the announced increase will not happen. The absence of this procedure is explained by the fact that government representatives have already carried out all the necessary indexations, increasing pensions for non-working citizens, and also completed the recalculation in accordance with the indexation observed in 2021. These processes took place over the course of a year.

It is also known that working pensioners whose pensions are not subject to indexation have been recalculated. There is no information on official government portals regarding changes in the size of pensions paid to unemployed citizens who have retired.

Indexation of pensions in 2021: how much will they increase and when?

Recently, citizens have become increasingly concerned and are discussing issues related to the future indexation of pensions.

• Dmitry Medvedev has already announced that in 2021 the government plans to return the legislative provision that concerns the indexation of pensions to last year’s inflation level, and to carry out an increase in the required amount (inflation for 2021 is planned to be 5,4%).
• Taking into account the cancellation of the increase in insurance pensions for working pensioners in 2021, they are concerned about the question of whether their pension will be indexed in 2021 . However, for such citizens the decision to cancel pension indexation was extended until 2021.

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• Pavel 06/25/2016 at 14:18
  I am a working pensioner and am planning to retire this summer. Can I count on an increase in my pension and where to apply for this?

  From January 1, 2021, indexation for working pensioners was frozen . At a meeting of the Federation Council on June 27, 2018, Finance Minister Anton Siluanov confirmed that no changes are envisaged for 2019 and 2021. However, at the beginning of 2021, President Vladimir Putin proposed amending the Constitution, which would provide for the restoration of indexation for working pensioners. The final adoption of the amendments is scheduled for March 2021.

  Pensions will be indexed only after the pensioner stops working. For example, if a pensioner resigns in 2021, then the indexation of his pension will be carried out immediately for 4 years - 2021, 2021, 2021, 2021 (the state has committed itself to indexing pensions for the entire period of work of the pensioner from 2021).

  If you have stopped working, then you do not need to do anything . From the 2nd quarter of 2021, monthly simplified reporting has been introduced for employers, and the fact that a pensioner is working will be determined automatically by the Pension Fund. After receiving and processing the reports, from which it follows that you have stopped working, you will begin to receive an insurance pension, taking into account the indexations that took place during your work.

When are monthly accruals expected to increase?

Citizens who live on the territory of the Russian Federation should know when exactly the increase in pensions will occur. Government officials, taking into account the implementation of the new pension reform, determined that monthly accruals can be increased by 7%. Previously, the amounts received by citizens from the Pension Fund were indexed in accordance with the observed inflation rate.

Tatyana Golikova, Deputy Prime Minister of the Russian Federation, has repeatedly said during meetings that on average monthly payments for citizens will increase by one thousand rubles. Accordingly, the average income will be increased by 12 thousand rubles. This increase applies to people receiving an average pension. Its size will vary according to individual characteristics (work experience, salary received, etc.).

Unfortunately, next year pensioners who continue to work will not be able to receive indexed pensions. However, in accordance with the accumulated points for 2021, a recalculation procedure will be carried out.

Pensions in November 2021

Will pension payments change in November 2021 or will they remain at the same level for some categories of recipients? The government is discussing the upcoming reform.

Increasing pensions and their payment schedule

The government decided that traditional indexation will be carried out on the first day of the calendar year. According to the Deputy Prime Minister, the current budget policy allows us to fulfill existing obligations regardless of the factors:

• price fluctuations;
• foreign economic and political conditions.

“The funds (additional received as a result of the reform) will be used to index pensions in full,” said Tatyana Golikova.

The decision to carry out the recalculation at the beginning of the year is set out in the bill, which is currently being prepared for the next reading. According to the document, the Pension Fund has planned an annual increase in pensions taking into account changes in the age of termination of work. It is expected that in the next three years, the recalculation of social payments to unemployed senior citizens will be carried out as follows:

In the meantime, pensions are recalculated twice a year: in the winter, adjusting them to the growth of inflation, and in the spring, depending on the capabilities of the Penfund. If the bill is adopted and the age is increased, next year the average pension in the country will be equal to 15.4 thousand rubles, and after six years it will increase to 20 thousand rubles, while the payment schedule will remain the same. These figures are given by Deputy Chairman Golikova.

As for the retirement age, people started talking about this at the beginning of the summer, when the head of government, Dmitry Medvedev, announced the upcoming reform. The transition is planned in several stages, until 2034. The document has already passed the first reading and caused a wide public response. At the same time, Head of State Vladimir Putin said that at the moment there is no final decision regarding pension reform, noting that pensions will be paid and funds are available in the budget. However, if changes are not made, the pension system may collapse.

Recalculation of social pensions for working and military pensioners

Changes to pension legislation, according to the authors of the bill, will attract additional funds and improve the situation of non-working pensioners. According to the latest news, it is expected that next year pensions will increase by an average of 1 thousand rubles. Thus, according to the head of the Accounts Chamber, thanks to the proposed changes, the quality of life of Russians will improve until 2030: “They will receive more benefits, services, buy goods, their pension will become higher, more significant by a third.”

The first steps in this direction will be taken in January next year - the pension recalculation will be 7.05%. At the same time, the Pension Fund noted that the winter indexation amounted to 3.7%, and in the spring only 2.9%, which in total is less than the upcoming increase.

As for citizens who continue to work in retirement, their payments are also calculated, but a little differently. In fact, this category of recipients does not receive indexation, since this procedure is frozen for them. They can increase the size of their social benefits only through contributions made by employers

Important! The maximum amount of increase for working pensioners for 2017 is 235.74 rubles. This is the cash equivalent of three pension points.

As stated in Penfund, for this category of recipients the recalculation is carried out from August 1. And if this year the maximum increase for them is a little more than two hundred rubles, then if a citizen did not work, his pension could increase by about 400 rubles.

Another category whose recalculation was also cancelled—military pensioners—among other things, they plan to increase their length of service. But for now these changes remain at the discussion stage, and not in the form of reading the bill.

Thus, while the government is discussing reform, social pensions are paid in the same amount and manner. The next indexation should be expected in the new year, and from November 1 of this year nothing new will happen.

About the thirteenth pension for military and police officers

• All other citizens, retirees receiving pension benefits can also count on it.
• There is no need to go anywhere specially for it.
• It will be accrued according to the approved schedule. In different regions it is different: it will coincide with the day of the regular payment or not.
• The total accrual of the 13th pension for the year will still take place.

Let's wait and see to what extent the country's government plans are being implemented.

Write in the comments what you think about it.

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Pension increase and payment schedule

Raising the retirement age has made adjustments to the plans of Russians - two-thirds of the country's residents do not expect an increase in pensions and do not plan to live only on this payment. These research results were published by MAGRAM Market Research agency. As respondents explained during the survey, already now, before retirement, Russians are beginning to develop plans to increase their income. Every fourth of those surveyed counts on subsidiary farming, and every fifth counts on the support of children or relatives. Also, 17% of respondents expect to accumulate savings before retirement or have income from rental real estate or another type of business.

The study also found out what average monthly income Russians consider acceptable for living in retirement:

• up to 25 thousand rubles – 25%;
• up to 50 thousand rubles – 29%;
• up to 100 thousand rubles – 28%;
• more than 100 thousand rubles – 13%.

Thus, the average amount needed by the average resident of Russia is 56,463 rubles per month.

While Russians are planning for their old age, the government is also concerned about this issue. Thus, the presidential amendments to the bill spell out the administrative and criminal liability of the employer for the dismissal of an elderly employee or refusal to hire on the basis of age, as well as the provision of tax benefits for the employment registration of older employees. Other changes include:

• increasing the amount of unemployment benefits - from February 1 next year, payments will amount to 11,280 rubles (currently 4,900 rubles);
• for rural workers, payment of pensions with a 25% surcharge, subject to 30 years of experience;
• the right to early retirement for mothers with many children (the period depends on the number of children);
• maintaining federal land and property tax breaks for 55-year-old women and 60-year-old men.

Don't miss: Employees will have an extra day off

As for benefits, regional ones will also remain. For example, additional payments to pensions, travel on public transport, benefits for paying for housing and communal services. At the same time, the payment schedule has not changed - next year they will be made according to the established schedule.