The amount of the basic old-age pension in 2021

When a person approaches old age, he begins to think about the size of his pension, as well as whether he can live on this amount or not. Therefore, even before this deadline, it is necessary to find out how pension payments are calculated, what components make up the final amount, and also how much you need to work to get a certain amount.

What determines the size of the pension?

What types of pensions are there and according to what regulatory laws are they calculated?

Many people cannot understand under what regulations a pension can be calculated. In Russia there are several legislative acts in force that regulate the issue of pension payment.

Today, the provisions of the Law “On Insurance Pensions” dated December 28, 2013 N 400-FZ are taken into account.

According to the law of 2013, pensions are calculated from the beginning of 2015. At the same time, when calculating for previous periods, the reference is to the law of 2001, which is no longer in force.

Excerpt from Article 1 of Federal Law No. 400

Currently, the concept of an insurance pension is increasingly used. If we talk about labor pensions, this concept has been used before. You can understand that now the insurance period is used, and the work experience is already somewhere in the past. Law number 400 allows you to take into account all the rules that were in force at the time of forming the length of service.

Therefore, the calculation usually uses data from several laws. An example is the situation: a woman studied at a technical school from 1972 to 1974, and after that she worked until 1979. From 1980 to 1982 she was on maternity leave, and after 2000 she worked. According to the rules of the Soviet Union, the period of training and maternity leave is counted as length of service, and work since 1992 will be taken into account according to Russian laws.

Note ! The main type of pension in our country is old-age insurance. At the same time, the calculation procedure also applies to insurance pensions for the loss of a breadwinner, as well as for disability. Only some coefficients will differ there.

The main type of pension in Russia is insurance

It may be noted that labor pensions, which were calculated before 2001, are paid as before. Other types of pensions, such as military, state and social, are calculated according to completely different rules. For example, social pensions can be determined by fixed amounts, and military pensions - as a certain percentage of monetary incentives. Therefore, it is necessary to consider all the rules by which pension payments are calculated for citizens who are now retiring.

There are also social and military pensions, which are calculated according to different rules.

Average data

Table. Average pension in Russia by year (according to the Pension Fund and Rosstat)

Based on the data in the table, it can be seen that the average pension in the country as a whole is growing at an accelerated, but insufficient pace. If you look at it in the context of accounting for inflation, you can see that practically the amount of the increase only just exceeds the inflation rate. And this suggests that, in fact, pensioners will not feel an increase in their financial situation. Due to the increase in the tax burden, prices even for essential goods also increase, which essentially neutralizes the increase in pension benefits.

According to the forecasts of the Ministry of Finance, due to the new pension reform, the average pension in the country will reach only 20 thousand rubles by 2024. With this level of pensions, will citizens be able to live better by 2024? According to our editors, the answer is “no.” Since during this period of time gasoline, tax deductions, prices for goods and services will rise significantly higher.

What is the average pension for Russia?

According to information provided by the Pension Fund, the average pension at the beginning of 2015 was 14,100 rubles. If we compare this with wages, then the amount is approximately 40% of the average wage in the country. In 2021, the average pension is 15,414 rubles. This is a thousand more than in 2021.

Note ! The average social pension is 9,215 rubles. For disabled children, the average pension is 12,432 rubles.

It should be noted that Russia throughout the post-Soviet space is considered one of the richest countries that provides for its pensioners. Competition comes only from the Baltic region, but the amount of payments is higher due to high utility costs.

The size of pensions may vary depending on the type and the reason for its assignment

But if we compare the situation with the 90s of the last century, then in this area there is an improvement in the general situation. In addition, the average pension is growing almost 2 times. This is also facilitated by an action such as indexing. It is held several times a year for different types of pensions.

What is the ceiling for old age pension?

Sections of the site:

• Pension calculation
• Subsidies
• Taxes for pensioners

Popular materials:

• Indexation and increase of pensions for working pensioners
• The largest and smallest old-age pension in Russia in 2019
• Tax benefits for pensioners in 2021

The Pension Fund of the Russian Federation announces the average old-age pension from April 1, 2021 – 13,700 rubles. This amount is 40% of the average earnings in Russia. However, the average social pension is 8,562 rubles. Disabled children receive an average pension payment of 8,790 rubles. The average pension of disabled citizens receiving pension benefits due to war injuries and injuries is 30,700 rubles. In April 2021, all pension payments were indexed.

What is the minimum age pension?

Having reached a certain age, every person must remember that he has a minimum pension amount. But what is he like?

In the legislation of our country today there is no concept of a minimum pension. The size depends on several factors. The minimum amount should not be lower than the subsistence level for pensioners. It is installed in each region separately. If the payment underestimates this amount, then additional social benefits are established for the pensioner. And then the pension will be “adjusted” to the cost of living.

Excerpt from Article 4 of Federal Law No. 134

Social supplement is established only when there is an application from a pensioner. If a person continues to work, then such payment does not exist. The minimum pension amount is increased only under certain circumstances:

• citizen is over 80 years old;
• there are several dependent relatives;
• indexation of insurance pension;
• pensioner goes to work.

Note ! To receive the minimum pension, you must have more than 15 years of work experience. But this is not the case for everyone. In this case, we will talk about the payment of a social pension.

At least 15 years of work experience is required to receive an insurance pension

Is it possible to determine the maximum amount of an old-age pension?

However, if the funded part was invested wisely, it will become a noticeable increase in the insurance part of the pension, which can lead to the fact that the total amount of the pension benefit of those who formed the funded part will be higher than that of those who decided not to do so.

After much debate, they decided not to increase the retirement age, but added to the rules for calculating the amount of pension payments a condition that if a citizen delays processing this payment, this will be the basis for adding an additional supplement to it in the future.

What is the maximum age pension?

There is currently no maximum size. This figure will depend on several circumstances.

1. Amount of work experience.
2. Wage.
3. Contributions to the pension fund.
4. Retirement age.

To understand this issue, it is necessary to refer to the law that regulates the payment of insurance pensions.

Article 8 of Federal Law No. 400

Since the beginning of this year, the retirement age has increased. Now women can retire only after 60 years, and men after 65. If a person retires later than this age, he receives an increase.

Note ! Everything will depend on the time the person spent at work when he was retired. The later you leave, the higher your monthly payment will be in the future.

Labor pension

A labor pension is a monthly cash payment intended to compensate insured citizens for wages and other benefits lost due to disability. As well as disabled members of their families, in the event of the death of these insured citizens.

The Law on Labor Pensions establishes the following types:

• old age pension
• disability pension
• survivor's pension

The old-age pension in 2021 is a monthly cash payment assigned to persons who have reached retirement age and have a certain length of service. It is compensation for wages or other income received by these citizens during their working activities.

Who is eligible to receive a pension?

The right to an old-age is granted to women who have reached 60 years of age (previously it was 55 years old), and men who have reached 65 years of age (previously it was 60 years old).

The right to a disability is granted to persons recognized as disabled in the manner prescribed by the law on the protection of disabled people of the Russian Federation.

A labor pension in the event of the loss of a breadwinner is assigned to disabled family members of deceased citizens who were dependent on them.

In 2021, the retirement age for women was raised to 60 years, and for men to 65 years. (all about pension reform here)

However, as a result of the pension reform, a transition period was introduced. Thus, the retirement age will increase gradually starting from 2021.

Retirement age for women:

Retirement age for men:

Pension calculator

Since 2013, a calculator has been posted on the website of the Ministry of Labor and the website of the Pension Fund, with which you can calculate future payments. But the exact size is not displayed there. A person can only predict the future amount of payments based on various indicators. When calculating, you will need to enter the salary, gender, if any, the length of military service and much more.

The calculator will give you the amount for today. In addition, it is based on a formula that was considered in the legislative act on insurance pensions and has been in force since 2015. It must be remembered that this formula contains an instrument that will reduce the size of the pension.

Note ! It is set depending on the situation in the country in the economic sphere, demographic and many others.

On the Pension Fund website you can roughly calculate the size of your future pension.

What is the maximum old-age pension in Russia in 2021

• the amount of wages that a citizen received during his work activity;
• the age at which a person retires;
• length of work experience of the applicant;
• the amount of contributions made to the Pension Fund, which were made from wages.

We recommend reading: Tax deductions when buying an apartment with a mortgage

The reason for this was the government's desire to save money from the Pension Fund. However, applicants also had the opportunity to receive additional income, which became a reality if they continued to work. In particular, if a man who has reached the so-called retirement age of 60 years does not express a desire to retire and decides to continue his working activity, he will receive a significant increase in the accrued benefit. The size will be proportional to the time he could have spent on a well-deserved rest. The situation is similar for women who have reached the age of 55 years.

How is a funded pension calculated?

How is 5% calculated?

In order to immediately receive the funded part of the pension, it is necessary that the funded payment be less than 5% of the total benefit. Otherwise, the payment will be set either urgent or indefinite. When the monthly accrual is calculated, the amount is divided by the planned payment period. It is 252 months in 2021.

What is the calculation formula?

According to Article 7 of Law No. 424, urgent payment is available only to those persons who have formed their own savings due to the following factors:

• additional contributions that were paid either by the person himself or by the employer;
• making contributions for co-financing;
• maternity capital or any other income.

Excerpt from Article 7 of Federal Law No. 424

When an urgent payment is calculated, the amount of savings is divided by a certain planned period. This cannot be less than 10 years. In this case, the formula will look like this.

NP = PN / T,

Where:

NP – monthly payment amount;

PN – total amount of savings;

T – planned number of months for payments.

Every year on August 1, the amount of pension payments is adjusted depending on the amount of contributions that were not taken into account when determining the amount of savings.

You can use the calculator below to calculate your payouts conveniently and accurately.

Go to calculations

The size of the funded pension is calculated according to a certain formula

Example

When citizen Anton Igorevich Mikhailov retired, he began to receive a payment of 7,900 rubles. The amount of savings at this time amounted to a total of 280 thousand rubles.

If an indefinite payment is established, then the amount of monthly income will be: 280000/252 = 1138.21 rubles.

If we take into account the insurance pension, then the amount of income will be: 7900 + 1138.21 = 9038.21 rubles.

You can calculate what part of the funded pension is taken into account in the total: 1138.21/9038.21=12%. If we consider this value, then the figure is more than the required 5%. It is not possible to receive a lump sum payment under any circumstances.

But if you wish, you can reduce the period to 10 years. Then the monthly payment will be as follows:

280000/120=2333.33 rubles. Citizen Mikhailov will be able to receive exactly this amount every month for 10 years.

You can receive parts of your funded pension for 252 months, or you can receive parts for 120 months.

How is a lump sum payment of a funded pension calculated?

If a lump sum payment occurs, then the person receives the entire amount at one time and in full. But this only applies in some cases. Among the people who may receive additional payment are:

• persons whose accumulative component is less than 5% of the total number of payments;
• persons who are assigned a payment as a result of the loss of a breadwinner, but there are no grounds for assigning an insurance pension;
• persons who act as heirs of the deceased with whom the account was opened.

In some cases, a funded pension can be received at one time

Note ! Those persons who have already received this type of payment can count on re-accrual only after a period of 5 years.

What can you get besides pension payments?

Pensioners are considered a vulnerable group of citizens because they, as a rule, do not carry out work activities. In rare cases, they may work in retirement. That is why they can expect to receive other additional benefits and benefits. In this case, the following category of deviations can be noted:

• exemption from property tax;
• no pension tax;
• It is possible to receive a property deduction if real estate was purchased within 3 years after retirement.

Pensioners have certain benefits

If we talk about healthcare, there are the following concessions.

1. All pensioners can be insured for free.
2. You have the right to receive free assistance.
3. If a person receives an old-age or disability pension, then some prescription medications are sold at a 50% discount.

In addition, there is compensation for payment for housing and communal services. If the pensioner is low-income, then it is possible to receive a subsidy for utility bills. In some regions, it is possible to receive reimbursement for housing costs.

In addition, pensioners are also provided with discounts on public transport. But everything will depend on the legislation of the region.

Benefits may vary by region

Note ! To summarize all of the above, citizens can receive additional benefits in addition to pensions.

WHAT IS IMPORTANT TO KNOW ABOUT THE NEW PENSIONS BILL

For persons holding government positions of the Russian Federation and government positions of constituent entities of the Russian Federation filled on a permanent basis, municipal positions filled on a permanent basis, positions of the state civil service of the Russian Federation and positions of the municipal service, for the assignment of an old-age insurance pension, from 01.01.2019 an increased retirement age.

1. through Russian Post - you can receive your pension at home or yourself at the post office at your place of residence. In this case, each pensioner is given a date for receiving a pension in accordance with the delivery schedule, and the pension can be paid later than the established date within the delivery period. It is better to find out the end date of the payment period in advance, since each post office has its own. If the pension is not received within six months, then its payment is suspended and you will need to write an application to your Pension Fund to resume payment;

We recommend reading: Day Hospital Grants Sick Leave 2021

When do payments occur?

The payment period is based only on official statistics depending on the life expectancy of pensioners. A special method is used for calculation

For 2021, the period was 252 months long. But there is a note here. Citizens who hold state and municipal positions have the right to determine the period using a different method. It is based on the expected payment period, which will be reduced by the number of full months from the date of reaching the age for which the period is specifically established on a general basis for civil servants. All this can be read in the law No. 400 and in Appendix 5 to this law.

In 2021, the expected pension payment period is 252 months, and it increases annually

Note ! If you apply later, the pension amount will increase. This is due to the fact that for each full year that has passed since the date of acquisition of the right to assign a funded pension, the mark increases. But, the expected payment period cannot be less than 168 months. This amounts to 14 years. It is currently possible to postpone the assignment of a pension, but only for no more than 6 years.

Example of calculating a funded pension

In January 2021, Kalinkina M.N. turned 55 years old. She contacted the Pension Fund and wanted to transfer her savings into a pension. The amount of insurance premiums that had been collected by this time amounted to 840,000 rubles. The expected payment period is 240 months, and her monthly payment will be 3,500 rubles.

How is a pension formed and calculated?

What is an individual pension coefficient (pension points)?

The individual pension coefficient (IPC) is a parameter that reflects in relative units the pension rights of the insured person to an insurance pension, formed taking into account:

• insurance contributions accrued and paid to the Pension Fund of the Russian Federation for insurance pensions;
• duration of insurance period;
• refusal to receive an insurance pension for a certain period.

The IPC consists of two parts:

1. IPC old is an IPC formed from pension rights as of January 1, 2015.

In its most general form, the old IPC is equal to the ratio of the insurance part of the labor pension, calculated according to the previously valid legislation as of December 31, 2014, and the value of the pension coefficient as of January 1, 2015, which is 64 rubles. 10 kopecks

2. The new IPC is the sum of individual pension coefficients for each year of work and (or) other activity from 2015 to the year the pension was assigned and coefficients for non-insurance periods.

The IPC for each year is determined as the ratio of the amount of insurance premiums for the old-age insurance pension paid for the corresponding calendar year for the insured person and the standard amount of insurance premiums for the old-age insurance pension for the corresponding calendar year, multiplied by 10. That is, IPC year = ( NE year / NSW year) x 10.

Standard amount of insurance premiums:

The sum of the coefficients for non-insurance periods = coefficient * number of full years + coefficient * (number of months in an incomplete year / 12) + coefficient * (number of days in an incomplete month / 360).

The coefficients for the full years of each non-insurance period are established by the Law on Insurance Pensions:

If a pension is assigned to a citizen later than he has the right to an old-age insurance pension, his IPC is increased by the coefficient established by law:

Pensions at present

Many people now have a huge number of questions about the pension reform, which began to take effect not so long ago. It should provide for the recalculation of the value in points, as well as an increase in length of service for the correct calculation of the amount.

When calculating a pension, the number of pension points is taken into account

Pensioners should only be reassured by the fact that all those people who managed to retire before 2015 will not violate any of their pension rights. They will have the same strength. Now it will be beneficial for citizens to receive a net salary without envelopes, because its size in the future directly affects the size of the pension.

The new legislation also includes such a concept as the annual pension coefficient. It will mean how the person worked throughout the year. The coefficient can be calculated as the ratio of the amount that is paid by the employer to the amount that can be paid from the maximum amount multiplied by the maximum value of the coefficient.

Among the advantages, it can be noted that the length of service, which is taken into account when assigning pension contributions, also includes maternity leave, which is 4.5 years. Moreover, it is not necessarily counted towards the mother, but specifically to the person who was officially on maternity leave.

The pension, as before, will remain in the form of two parts. It will be insurance and savings. Insurance will be calculated according to the law of the same name, and savings according to law number 424, which came into force in 2015.

The pension consists of two parts – insurance and funded

Note ! If you look closely at all the changes made to the pension reform, as well as changes in legislation, you can see that the state is taking the country out of the period of paying low pensions. Among the evidence for this is indexation, which is carried out 2 times a year. There may also be various recalculations for pensioners and much more.

But it is under no circumstances possible to provide an unambiguous conclusion that everything is fine in this type of activity. It is necessary for the new reform to take root and only then look at any positive changes.

What is the minimum and maximum amount of old-age pension in Russia

Another advantage was that the “working” experience required to assign a pension includes parental leave for up to 1.5 years for a total of 4.5 years. Moreover, this leave is counted not only to the mother, but to the person who was officially on maternity leave.

The new law introduced the concept of “annual pension coefficient” (APC), meaning the result of a citizen’s work for the year. The RPC is equal to the ratio of the amount paid by your employer to the amount that can be paid from the maximum contribution amount multiplied by the maximum value of the pension ratio.

What will happen to pension growth this year?

In 2021, we can observe several pension increases that were planned at the state level in advance. This is why people will be able to increase their income level.

In 2021, insurance pensions will be indexed by 7%

From January 1, there was an increase in the insurance pension for those pensioners who do not work. The increase was slightly more than 7%. It should be noted that this figure is almost 2 times higher than inflation in the country. Thus, the average size will increase by about 1000 rubles. But as Minister of Labor and Social Protection Maxim Topilin previously noted, this does not mean that each pensioner will have an additional payment of 1,000 rubles. This indicator is average, which means that it will vary within certain limits for everyone. For some, the increase will be a large part of the amount, for others it will be less.

The size will depend on the salary that the citizen received when he worked. In addition, the period of work activity will also be taken into account here. However, the pension amount increases to an average of 15,400 rubles.

In addition, residents of rural areas will receive an additional increase in pension payments. It will be 25% of the amount that is established. In 2021 it amounted to 5334 rubles. If we do a recalculation, then every villager who is retired will receive an increase of 1300-1400 rubles. It is received by those citizens who have worked for more than 30 years in agriculture and are currently pensioners. In addition, they must still live in rural areas. If a person moves to live in the city or continues to work, then in no case will he be given an increase. According to preliminary calculations of the pension fund, about 950,000 citizens may receive an increase. There is no need to apply for it, because it is credited automatically.

Retired rural residents who have worked for more than 30 years in the agricultural sector receive a 25% bonus

In addition, in the new year, namely from April 1, social pensions or other various pension accruals will increase. They are expected to increase by almost 2.5 percent. But this figure is not final. It depends precisely on how much the cost of living increases over the year. But this information will be provided by the statistical department a little later. If it coincides with the forecast of 2.4%, then the pension amount will be 9,200 rubles.

Note ! It should also be noted that pensions for working citizens will increase from August 1. The mark of the increase will depend on how many contributions were made at the expense of pensioners. But in any case, it cannot be less than 3 points. One point is equal to 87.24 rubles. The maximum increase can grow to 262 rubles.

Pension largely depends on the cost of living

What to consider?

The law on calculating insurance pensions applies specifically to those people who receive payments depending on their age. If we talk about disability or survivor pensions, then additional coefficients are used. The total amount will be much less. To make the calculations simpler, increasing coefficients for those people who decide not to retire early are not taken into account here.

If there is a deferment for a year, the payment will increase by 5.6%. If a person left 2 years later, then by 12%, and if 3 years later, then by 19%. Over 10 years, the figure reaches 111%.

Disability and survivor pensions are calculated differently

Note ! The cost of a point for a year with a deferment will increase by 7%, for 2 years - by 15%, and if for 3 - then by 24%. Over 10 years, the figure reaches 132%.

Those people who are planning to retire in the coming years can use some tips.

1. Collect all certificates from any place of work up to 2002. At that time, there was still an accounting system in place for each person separately. You need to collect certificates in order to confirm your fact of work. We must not forget about the documents that will indicate a change in the name of the enterprise or organization.
2. When there were periods of study that could be included in the experience, then you need to collect all the supporting documents. These may be educational documents or entries in the work book. In addition, there is also a certain list of additional documents.

   It is recommended to prepare all documents for timely and correct registration of pension

3. If you receive a salary certificate for 5 years before 2002, then you need to select those periods where the income mark was the highest.
4. Before carrying out the procedure, it is better to contact the Pension Fund. This can be done 9 months before retirement. This may require an additional list of documents, the collection of which may take some time.
5. An application for a pension can be submitted one month before retirement age.

If we consider all the current provisions, then the main thing should be noted: you must be officially employed at any time, and also pay insurance contributions to the Pension Fund. Without such contributions, there will be no pension points, which means that you will not be able to receive an insurance pension in any way.