A bill has been introduced to lower the retirement age in Russia

What changes in pensions await Russians from July 1, 2021

New amendments have been made to the Federal Law “On Insurance Pensions”. The authors of the document believe that the pension reform should be recognized as outdated, and the retirement age should be returned to 55 for women and 60 for men.

Nowadays, men retire at the age of 65, and women at 60. In addition, the authors of the document propose to impose a ban on raising the retirement age in the near future. There are plans not to raise the age of people retiring until January 1, 2035.

Retirement age increase table

Why did they propose to lower the retirement age?

According to statistics, about 30% of the male population of the Russian Federation does not live to reach retirement age; for women, the figure reaches 10%. Experts unanimously say that if the retirement age is increased, the figure may be higher.

The authors of the document on lowering the retirement age were also guided by the fact that the majority of the Russian population is dissatisfied with the fact that the retirement age is now quite high. Moreover, there are social and economic aspects in the current reform that have not been fully worked out.

Changes in pension calculations from 2021

Citizens should be prepared for changes in such areas as the conditions for granting pension rights and the amount of benefits from 2019. The following changes have already been approved:

• reaching retirement age is increased by six months for women and men;
• the conditions for providing social and preferential pensions will also be adjusted;
• rates will increase when calculating benefits for pensioners who do not want to continue working (the indexation percentage planned for 2021 will be approximately 7.05%);
• annual indexation is introduced no later than January 1, 2019.

The government does not strive to equalize and bring the amount of benefits to a single denominator.
Citizens who have accumulated more under the insurance part of their pension can count on a higher benefit. To calculate the amount of monthly payments, you need to know the amount of savings, which must be multiplied by the coefficient corresponding to the indexation amount (1.0705 in 2021). This payment system will only apply to citizens who have reached retirement age and have refused to continue working. The system will be operational from January 1, 2021. The retirement age also depends on the year of birth, so men born in 1963 will be able to exercise their right at 65 years old, that is, they will retire no earlier than 2028. Whereas men born in 1959 should wait until they turn 60.5 years old, and this will happen in 2021 or early 2020. For women, retirement age comes 5 years earlier than for men.

The government has already approved a new pension schedule, which will go into effect on January 1, 2021. That is, citizens reaching retirement age next year can count on a higher pension and its calculation according to new principles. No one knows how long the new rules will be in effect; in practice, the government has shown the variability of decisions and the tendency to make mistakes when determining the degree of feasibility of ongoing reforms in the social sphere.

Early retirement: which Russians can count on it?

This year the government updated the list of specializations that fall into the category of the population that has the right to retire early. Thus, the list of professions included miners, teachers, trolleybus and bus drivers, rescuers, fire department workers, medical workers and others.

Each profession has its own period of retirement. It often varies from 25 to 30 years. In other words, a person at a given period can be from 45 to 50 years old.

Lyudmila Piskunova from the Union of Pensioners of the Russian Federation said that some categories of Russians who can count on early retirement are entitled to increased payments. We are talking about those Russians who have relevant services to the country. In addition, those people who have been faithful to their activities for 40 years can count on increased pension payments.

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Retirement in areas equated to the Far North

Residents of the Far North retire 5 years earlier.

The retirement period for northerners, as well as residents of territories equal in status to the Far North, is 5 years lower than that established in the country. This figure remains the same today, so the retirement age after the reform will be 55 years for women and 60 years for men.

The required work experience remains the same:

• 15 years for the regions of the Far North and 20 for equivalent regions;
• 20 and 15 years of insurance experience for men and women.

Those northerners who are at the pre-retirement stage can also stop working early six months before the designated retirement age.

There is a separate category of residents who will not need to adapt to the new established order. They will retire at the same age as previously established. This category of persons includes: indigenous northern peoples and residents of the North who have raised two or more children.

Indexation of pensions in 2021

Indexation in 2021 in Russia for those who are already retired will be carried out with significant changes compared to previous years.

According to the Government's plans, instead of the usual annual increase in pensions for non-working pensioners from February 1 by the amount of inflation, in 2021 it is planned to carry out indexation from January 1 by an amount exceeding the inflation rate - by 7.05%.

As a result of this, the Government plans to increase the monthly incomes of non-working pensioners in 2021 by an average of 1,000 rubles (that is, in total for the year the total increase will be 12,000 rubles).

Indexation of pensions in 2021, who will get a raise

The increase in pensions from 2021 by an average of 1 thousand rubles will be carried out using an indexation mechanism, so the increase will affect only non-working pensioners, the press service of the Ministry of Labor told reporters.

It is planned to increase monthly insurance pensions by an average of 1 thousand rubles in 2021 through indexation of pensions. This means that the increase in pensions will affect non-working pensioners,” the report says.

Earlier, Deputy Prime Minister of the Russian Federation Tatyana Golikova said that on average, the annual income of non-working pensioners after raising the retirement age from 2021 will increase by about 12 thousand rubles. Golikova’s secretariat explained that from 2021, on average, citizens’ pensions will increase by 1 thousand rubles, and every month a citizen will receive an amount of 1 thousand rubles more than a year earlier.

If in 2021 a citizen received a pension in the amount of 14 thousand rubles, then in 2021, taking into account the indexation schedule, it will be 15 thousand rubles. Thus, the additional annual pension income will increase by 12 thousand rubles for a non-working pensioner, depending on the length of service and paid insurance premiums.

New approach to increasing pensions, by how much

If until recently the increase in pensions for non-working pensioners occurred by an amount not less than the inflation rate, then in 2019 the Government will change the traditional approach to increasing pensions, since the total amount of the increase will exceed the level of growth in consumer prices. The procedure itself will be implemented in 2 stages:

From February 1, 2019, indexation will take place taking into account the inflation rate for the past year. According to preliminary forecasts, inflation for 2021 is estimated at 2.9-3.1%. This means that from February 1, the increase will be about 3% or 432 rubles. with an average pension payment of 14,414 rubles.

From April 1, 2019, additional indexation will take place, the amount of which depends on the income of the Russian Pension Fund (it is carried out only if the required amount of funds is available in the Pension Fund budget). For 2021, the release of additional funds that can be used for additional indexation of payments to pensioners will appear thanks to the new pension reform, or rather the increase in the retirement age. If we take into account the increase announced by the Government for 2021, ultimately by 7%, it turns out that from April 1 they will increase by another 4% or by 568 rubles. in monetary terms, subject to receiving the national average pension provision in 2021.

On a note

According to Anton Siluanov, head of the Ministry of Finance, the expected increase in VAT to 20% in 2021 (compared to the current 18%) could lead to an increase in inflation to 4.5%. In this case, the February increase will be on average 640 rubles, and the April increase will be only 360 rubles.

The government plans to maintain the given rate (2 times higher than inflation) for at least the next 5 years. In this case, by 2024, Russians will receive pension payments of an average of 20,000 rubles, that is, they will increase by 35% compared to 2021!

According to Tatyana Golikova, Deputy Prime Minister of the Russian Federation for Social Policy, the average increase in payments to pensioners in 2019 will be 1,000 rubles. monthly or 12,000 rub. in just a year. If the planned 7 percent increase is implemented, in 2019 the amount of the average insurance pension in the country will be 15,423 rubles. (for comparison, for 2021 it is 14,414 rubles).

Such a significant increase in benefits compared to previous years was achieved primarily due to budget savings associated with raising the retirement age.

Pension payments to working pensioners, latest news

Golikova previously reported that this package of changes to the pension system does not include indexation of payments to working pensioners.

The law on the suspension of indexation of pensions for working pensioners came into force in Russia in January 2021. On April 11, 2021, Prime Minister of the Russian Federation Dmitry Medvedev said in the State Duma that the possibility of indexing pensions for working pensioners can be discussed, this issue is not closed. The head of the Cabinet of Ministers admitted that it was decided to abandon indexation “only for economic reasons” because “there was not enough money for it.”

Russian President Vladimir Putin noted during the “Direct Line” on June 7 that the issue of indexation of pensions for working pensioners requires elaboration. In particular, this applies to low-wage specialists. He added that we are talking, among other things, about staff in kindergartens and hospitals.

Later, the Pension Fund of Russia (PFR) reported that pensions of working pensioners are increased annually from August 1, the size of the increase depends on the amount of insurance premiums paid by the employer for the working year. The average increase in pension from August 1, 2021 was 169 rubles. According to the Pension Fund of Russia, as of May 1, 2018, there were about 9 million working pensioners in Russia. Their pensions have not been indexed since 2021.

The fund noted that social payments through the Pension Fund are also indexed to all pensioners, regardless of their employment. Upon completion of the pensioner’s work activity, the pension is increased by all indexations that have been made and is paid taking them into account, even in the event of further employment.

Who will not receive a pension increase in 2021

This package also has its limitations. Even in the summer, before the adoption of the law, the Minister of Social Affairs, Deputy Prime Minister Tatyana Golikova gave very important and comprehensive information regarding the indexation of pensions for working pensioners:

— The announced indexation of labor pensions, which is scheduled for January 1, 2021, does not include an increase in pensions for working pensioners. In other words, if you work, then your pension will not be indexed by 7.05% and you will not receive an increase of 1000 rubles.

Also, those who receive a survivor’s pension or a social pension should not count on this increase, since these categories of citizens were not discussed at meetings in the Government dedicated to the indexation of pension payments.

However, according to data from the Russian Pension Fund, it follows that pensions for working pensioners are increased annually from August 1. It is worth noting that as soon as a pensioner has finished working, he can report this to the Pension Fund and immediately, starting next month, his pension will be re-indexed according to the new rules and the promised increase of 1000 rubles will be credited.

Short

Pensions will be increased twice in 2021 - The insurance part of the pension will be increased on January 1 by 7.05%. The social pension will be increased on April 1 by 2.4%

The average old-age insurance pension in 2019 is RUB 14,185.

The average disability insurance pension in 2019 is RUB 8,791.

The average insurance pension in case of loss of a breadwinner in 2019 is 8,856 rubles.

The average social pension in 2021 is 9082 rubles.

Average pensions for disabled military personnel and participants in the Great Patriotic War are 30,093 rubles. and 35,615 rub.

The smallest and largest pensions in Russia - Pensioners of Kabardino-Balkaria receive the least - 11,413 rubles. Chukotka pensioners have the most - 25,173 rubles

What kind of pension do Russians dream of ? - Working Russians named the size of their desired pension - 37,300 rubles

How to calculate

Pensioners will be able to calculate the increase in their pension themselves. The formula for calculation is quite simple. To do this, you need to multiply the current payment amount by 0.0705 (indexation by 7.05%).

The Russian Pension Fund posted the instructions on its website. Specific examples are also given. Thus, a non-working citizen receives 13,817 rubles in old age. We multiply this amount by the number above - we get an increase of 974 rubles. We add both values ​​and get a pension in 2021 - 14,791 rubles.

Table of increasing retirement age by year of birth

The final changes to the retirement age should increase this period:

• in women under 63 years of age;
• in men under 65 years of age.

All women who were born in 1964 and later will notice these changes in themselves. Raising the retirement age will also affect men born in 1959 and later.

One of the options for changing the retirement age (project)

The retirement table from 2021 by year of birth for men and women during the transition period is presented below: