How is the old age pension calculated in 2020-2021 - step by step

The state provides financial support to incapacitated persons, including elderly people. In Russia, about 42 million citizens are among pensioners.

Current information:
the amount of old-age pension in 2021 , latest news.

Most of them receive cash payments according to their age category. You will learn about what the old-age pension is in 2021 and how to get it in this article.

What is an old-age pension and what types are there?

Pension is financial support for older people, allocated from the state budget. Its size can be determined individually depending on certain factors - citizen status, region of residence and work, working conditions, wages and length of service.

Elena Smirnova

Pension lawyer, ready to answer your questions.

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The legislation of the Russian Federation defines two types of old-age pensions in 2019 - insurance, funded and social payments. The first is provided to people with disabilities or work-related injuries.

Insurance type of payments

The old-age insurance pension in 2021 is paid to people deprived of the ability to work - mainly disabled people who have been injured or have lost their breadwinner due to death.

Conditions for obtaining an insurance pension

To register for an old-age insurance pension in 2021, you must meet some mandatory requirements:

1. Minimum insurance period.
2. Availability of the required number of points.
3. Reaching a certain age mark.

Important! The amount of coverage under the insurance system does not change depending on the working capacity of a citizen of the Russian Federation.

Calculation of insurance pension

It is possible to calculate the old-age insurance pension in 2021 only on the basis of this formula:

SP = IPK x SPK

In this case, the term SP means the expected amount of the assigned pension; IPC is a personal coefficient, to calculate which you also need to resort to a formula; SPK is the value of the individual coefficient at the time of assignment of cash payments.

To determine the volume of IPC, you will need to calculate using the following formula:

IPK = (IPKS + IPKN) x KVSP

IPKS in this situation denotes the coefficient on the day of assignment of material payments. The term IPCI refers to the multiplier for periods not exceeding January 1, 2015. And KVSP is the increasing level of the coefficient necessary to calculate insurance coverage in the event of the loss of a breadwinner.

Important! All these procedures need to be carried out only by those who started working in 2015. For the rest, all these coefficients are converted into cumulative points.

Insurance pension volumes

According to statistics, on January 1, the amount of the old-age insurance pension recorded in 2021 is equal to 5,334 rubles and 19 kopecks per month .

Also, in addition, the amount of social monthly payments may depend on the disability group and the presence of dependents:

1. Group 1 disability over 80 years of age without dependents – 10,688 rubles 38 kopecks.
2. Trustees living with category 1 disabled people (except for those who have reached 80 years of age or the same category) - 7,112 rubles 25 kopecks with one, 8,890 rubles 25 kopecks for two and 10,688 rubles 37 kopecks for three cohabitants.
3. Disabled people of group 1 and over 80 years of age who are in the care of disabled citizens - with one cohabitant - 12,446 rubles 44 kopecks, with two - 14,244 rubles 50 kopecks, and with three - 16,002 rubles 56 kopecks.
4. Those who worked for 15 years in the Far North region (with the exception of disabled people of group 1), have no dependents, have not reached 80 years of age, with 25 years of insurance experience for men and 20 years for women - 8,001 rubles 29 kopecks.
5. Disabled persons of category 1, who have worked for 15 years in the Far North region, have no dependents, have reached the age of 80, with 25 years of insurance experience for men and 20 years for women - 16,002 rubles 58 kopecks.

Documents required for registration

Before registering an old-age pension in their name in 2019, citizens will need to provide the following documents to the fund office:

1. Passport or any other proof of identity.
2. A book indicating periods of work or other activity.
3. Certificate of average salary for the last 60 calendar months.

What does an old-age insurance pension mean?

Insurance pensions are of 3 types:

• by old age;
• on disability;
• on the occasion of the loss of a breadwinner.

Also see “Insurance and social pension: what is the difference?”

There is an important nuance in how the insurance part of the pension is calculated in 2019: initially, citizens’ pension rights are formed in individual pension coefficients, or pension points. The calculation of insurance pension points is based on the fact that all pension rights formed before 2015 are converted without reduction into pension points and will be taken into account when assigning an insurance pension.

• SP – insurance pension;
• IPC – the sum of all pension coefficients accrued on the date of assignment of the insurance pension;
• SIPC is the value of the pension coefficient on the date of assignment of the insurance pension.

Explanation of how the insurance pension is calculated:

• when assigning a pension SIPC from 01/01/2019 = 87.24 rubles; it is indexed annually by the state;
• FV – fixed payment. As of January 1, 2021 it is 5334.19 rubles. Indexed annually by the state.

Please note that when determining the sum of all pension coefficients, they are taken for each calendar year.

The amount of pension coefficients (IPC) increases when applying for an old-age insurance pension for the first time (including early) after the right to it arises. For each year of later application for a pension, the insurance pension will increase by the corresponding premium coefficients.

Also see “What you need to know about the insurance pension of working pensioners.”

An old-age insurance pension is a cash benefit that is paid monthly to persons who have reached the appropriate retirement age. In essence, this type of social security is compensation for disability due to age.

In everyday life you can hear such wording as “labor pension”. Many believe that this concept is identical to that discussed in this article. However, it is not. Its formation largely depends on length of service, that is, the number of years worked. Since 2013, this form of pension provision is no longer used.

Important! If a citizen is an individual entrepreneur, then he is obliged to pay insurance premiums for himself.

In addition, a similar principle for establishing payments is used when calculating the following types of benefits:

• Pensions for the loss of a breadwinner (if the latter had some insurance experience);
• Insurance (labor) disability pension (provided that the disabled person has officially worked for at least one day).

The amount of old-age security is strictly individual and depends on the characteristics, duration and nature of the pensioner’s previous work activity. In addition, various allowances are added to the amount of the payment, for example, “northern coefficients” if a citizen has worked for a long time in the Far North.

Also, additional coefficients (called bonuses) take place in the case when a pensioner continues to work after reaching the appropriate age, that is, simply put, he retires later.

Calculation procedure

SP = IPK x SPK FV.

SP – insurance pension.

IPC is the sum of pension points.

SPK – the value of pension points.

FV – fixed payment.

The calculation is carried out automatically by the pension fund based on information about the applicant’s insurance experience.

Social pension

The old-age social pension in 2021 is a guaranteed financial provision by the state for every month. It is issued to citizens born no later than 1966. For those who are younger, it is possible to choose between receiving an insurance or savings portion.

Who can apply for a social old-age pension?

Several types of disabled persons can receive an old-age insurance pension in 2021:

1. Minor children or full-time students under the age of 23, deprived of all or one of their parents.
2. Disabled people since childhood, category 1, 2 or 3.
3. The people of the North are a small group, including women over 50 years old and men over 55 years old, who support traditions and culture.
4. Citizens who have not received the right to register insurance coverage.
5. Close people of a soldier who has committed a crime punishable under the criminal code and resulting in death or incapacity.
6. Those who went through the Great Patriotic War, with 1, 2 or 3 degrees of disability, and received the badge of “Resident of besieged Leningrad”.

Social pension amounts

The size of the old-age social pension in 2021 for individuals without disabilities is 5034 rubles 25 kopecks . Regional and federal surcharges are also provided. The volume of the latter amounts to 8,803 rubles , and they are assigned by the Pension Fund of the Russian Federation at the registration address.

Registration of social benefits in old age

It is possible to register a social old-age pension in 2021 by submitting an application to the MFC, or directly to the local branch of the Pension Fund.

In this case, provide a package of certificates that should contain the following documents:

1. Passport confirming Russian citizenship.
2. Employment history.
3. For residents of the Far North - a certificate indicating registration information in this territory and a completed column about nationality.

Level of basic, minimum and average pension in Russia in 2019

The basic (fixed) part of the pension is a payment that has a strictly defined amount and is provided to citizens regardless of the basis on which the provision is assigned (old age, disability or loss of a breadwinner).

The fixed part of the benefit is provided to Russians in accordance with the provisions of Article 16 of Federal Law No. 400.

This regulation states that the exact amount of basic payments is determined by which category of citizens the person wishing to receive a pension belongs to.

In addition, it is necessary to take into account certain factors characterizing the work activity and marital status of potential retirees.

The right to receive the basic part of the pension is granted to the following groups of persons:

• those wishing to retire due to old age or long service;
• those who have lost their breadwinner;
• having a disability;
• supporting dependents.

The amount of pension provision will be different in all cases.

A fixed pension has a strictly defined amount, which will become larger or smaller depending on which category the person applying for the payments belongs to.

For example, survivors are provided with exactly half the basic benefit. If a citizen provides for dependents, then the amount of payments will increase or decrease depending on exactly how many people he supports.

To form a fixed pension, funds from the state budget are used, as well as money sent by working citizens to the Pension Fund as mandatory insurance contributions (6% of the 22% paid).

If the recipient of the pension is a child who has lost a breadwinner, then having insurance and making contributions is not mandatory. Payments are assigned based on the contributions made by the person who supported him.

Starting in 2021, Russia begins a gradual increase in the generally established age, which gives the right to an old-age insurance pension and a state security pension. The law provides for a smooth transition to new parameters, according to which the retirement age in 2019 is increased by one year. The real increase in this case will be six months - this step will be provided by a special benefit that allows you to assign a pension six months earlier than the new retirement age. Anyone who was supposed to retire in 2021 under the terms of the previous legislation will be able to use it. These are mainly women born in 1964 and men born in 1959, who will be the first to be affected by the increase in the retirement age. Thanks to the benefit, they will begin to retire in July 2021.

For many Russians, however, pension payments remain within the same age limits. This primarily applies to people who have early retirement benefits. For example, miners and miners, rescuers, public transport drivers and other workers engaged in difficult, dangerous and harmful working conditions, for which employers pay additional contributions to pension insurance. Most of these workers, as before, retire at 50 and 55 years old, depending on gender.

Preferential retirement is also preserved for teachers, doctors and representatives of other professions, for whom payments are assigned not upon reaching retirement age, but after acquiring the necessary length of service. Moreover, from 2021, the assignment of a pension in such cases takes into account the transition period for raising the retirement age, which comes into force from the moment the required length of service in the profession is acquired. For example, a school teacher who completed the required teaching experience in April 2019 will be able to retire in accordance with the transition period after six months, in October 2019.

As before, to assign a pension in 2021, it is necessary to meet the minimum requirements for length of service and pension coefficients. The right to a pension this year is given by 10 years of service and 16.2 pension coefficient.

It should also be noted that the increase in the retirement age does not apply to disability pensions. They are retained in full and are assigned to those who have lost their ability to work, regardless of age when determining the disability group.

The reform of the pension system, which the Government plans to implement in the coming years, is aimed at ensuring sustainable growth of pensions above the inflation rate, as well as bringing its value to 40% of a citizen’s salary. The Government is solving all these problems with the goal of creating a sustainable (self-sufficient) pension system that will exist without the need to attract additional funds from the federal budget to cover the deficit of the Russian Pension Fund (PFR).

In 2021, the following changes are expected in terms of pension provision for Russians:

1. Changing the conditions for old age pension, including:
   raising the generally established retirement age and adjusting the conditions for assigning certain types of preferential pensions;
2. a similar increase in the age for applying for a social old-age pension.
3. Changes in the procedure for indexing pensions, including:
   increasing insurance pensions for unemployed citizens at a rate higher than inflation (by an average of 1,000 rubles).

In accordance with Art. 8 of Law No. 400-FZ of December 28, 2013, the old-age insurance (labor) pension is established when three main conditions are met:

• reaching the established retirement age;
• having the minimum required work experience;
• availability of the required number of pension points (the so-called individual pension coefficient - IPC).

In 2021, all these standards, including the retirement age, will be increased. This will increase the requirements necessary for Russians to retire in old age.

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First of all, the new law, which has already been approved by the State Duma and signed by the President, involves a gradual increase in the retirement age, the achievement of which gives the right to apply for an old-age insurance pension. It will begin in 2021.

Thus, one of the most significant changes in pension legislation in 2021 is that women who have reached 55.5 years of age, and men who have reached 60.5 years of age will be able to apply for an old-age pension on a general basis. In effect this means that:

• in the first half of 2021, only those Russians who will receive the right to a pension before the end of 2021 will be able to retire (women and men, respectively, upon reaching 55 and 60 years of age);
• those citizens who will turn 55 and 60 years old only in the first half of 2021 will be able to retire in the second half of the year at the ages of 55.5 and 60.5 years;
• According to the new law, men and women who will turn 55 and 60 years old in the second half of 2021 will retire only in 2020.

According to the adopted law, the retirement age in Russia will be increased annually by 1 year until the final values ​​are reached - 60 years for women and 65 years for men (plus 5 years). For the first time, two years (2019 and 2020) will provide for preferential retirement - 6 months earlier than due.

Taking into account that the planned increase in the retirement age in 1-year increments will begin in 2021, then in accordance with the schedule in odd-numbered years (2019, 2021, 2023, etc.) new pensioners will not appear in Russia (with the exception of 2021 and 2021, when, according to Vladimir Putin’s amendment, it will be possible to retire 0.5 years earlier for those pensioners who turn 55 and 60 years old in 2019-2020). Also, in odd-numbered years, some categories of “early retirees” and those who have already reached retirement age and have been postponing retirement will be able to retire).

It is worth noting that the law provides for the possibility of applying for old-age insurance payments ahead of schedule if you have a long insurance period: 42 years for men and 37 years for women. In this case, you can retire 2 years earlier than the established retirement age, but not earlier than upon reaching 60 years for men and 55 years for women.

This means that citizens with such a long work history (42 years for men and 37 years for women) will be able to apply for a pension in 2021 according to the conditions of the old retirement age - upon reaching 60 and 55 years.

As before, the pension increase in 2021 will be carried out in the form of indexation (that is, by a certain percentage). However, its procedure will be noticeably adjusted. Starting from 2019, pensions will be indexed from January 1 by an amount exceeding the inflation rate in the past year. In 2021, the Government's guideline for indexation is to ensure an average increase of 1,000 rubles. However, this applies only to insurance pensions and only to non-working pensioners!

The Government's preliminary plans for indexation in 2021 are presented in the table:

The indexation percentage for insurance pensions (7.05%) was determined taking into account the Government’s plans to increase the average pension at a rate higher than inflation - by 1 thousand rubles annually, so that by 2024 the average pension would increase from 14 to 20 thousand. rub. For comparison, official inflation for the coming years (2018-2021) is expected to be within 3-4%.

For example, taking into account the data presented above, the following new values ​​for various pension payments will be established in 2021:

In 2021, the fixed payment to pensions is equal to 4,982 rubles 90 kopecks. From January 1, 2021, all components of old-age insurance pensions for non-working pensioners are indexed by 7.05%.

Thus, after the January indexation, the amount of the fixed payment to insurance pensions in Russia for 2021 is equal to 5,334 rubles 20 kopecks

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This parameter was approved in the budget of the Russian Pension Fund, which was adopted by State Duma deputies.

Indexation of insurance pensions for non-working pensioners in Russia is carried out by recalculating all components separately. That is, the pension amount does not increase by the percentage of indexation “overhead”. The Pension Fund has established the specified size of the fixed part of the pension for 2021, as well as the cost of one pension point after indexation by the same 7.05% - 87 rubles 24 kopecks. Then, depending on the number of pension points in the piggy bank of a particular pensioner, the final amount of the pension after indexation is calculated.

With this calculation, the final amount may differ slightly from the value that the pensioner himself will receive if he simply multiplies the amount of his pension by 1.0705.

For some categories of pensioners, the fixed payment is higher than for others. For beneficiaries, there are special coefficients, due to which the amount of the fixed payment can be a quarter higher, or maybe twice (and sometimes even four times) higher than the standard one.

New for 2021 in the list of such beneficiaries are retired farmers. For them, the fixed payment from January 1, 2019 is 25% more than for the main category of pensioners.

The “rural” pension supplement will be received by pensioners who meet three mandatory requirements:

• Living in a rural area at the moment.
• At least 30 years of experience in agriculture.
• The pensioner is not working now.

25% of the fixed payment amount in 2021 – 1,333 rubles 55 kopecks. This is exactly how much additional pensions for elderly villagers will increase in 2021, plus we need to add indexation to the previous pension amount. The total increase in pensions from the new year for this category will be equal to about 2 thousand rubles.

The full list of beneficiaries who are entitled to an increased fixed payment in addition to pensions is given in the table below:

State support for the liquidators of the Chernobyl nuclear power plant

According to the law, financial payments are also provided to those who were directly involved in eliminating the consequences of the disaster at the Chernobyl nuclear power plant and to people evacuated from the scene.

Additionally, citizens who eliminated the consequences of the accident can switch to state support ahead of schedule - for men from 55 years old, and for women from 50 years old.

Elena Smirnova

Pension lawyer, ready to answer your questions.

Ask me a question

If injuries were sustained that led to disability, then the terms are reduced to 50 and 45 years for men and women, respectively.