The problem of insufficiently high pension payments is one of the most common problems in the modern world. Countries and states are developing their economies and politics, but all the time they forget about the common people, for whom it is not so easy to live in such conditions. The country stops thinking about the common people, about such vulnerable sections of the population as pensioners.
But such a problem as low prices does not exist in our country, but also, for example, in such a developing and progressive republic as Armenia. Despite its development and success among other countries and republics, there is still a problem associated with the low solvency of pensioners. Today we will consider the issue of pensions in Armenia.
Pension system of Armenia
First, let's look at the pension system of Armenia so that we can compare it with what it was and what has become thanks to pension reforms. As in other countries, for example Russia, pension payments for a future pension amount to 10% of the total earnings of each citizen who works. Many people wonder what is included in this 10%, which is withdrawn and deducted every month.
They consist of:
- 5% is paid by the citizen himself;
- the remaining 5% is paid by the state from budget funds.
According to the latest data, in the event of reform, it is planned to change this interest rate to this type - 2.5% and 7.5%. This means that now, in connection with the adopted reform, the state will pay the majority of pension savings instead of the citizen, and the citizen will contribute only a small part to his future pension.
Important! It is worth noting that in order for this system to come into effect, the state will need much more funds than is currently available in the country’s budget. Namely, the approximate amount, according to rough estimates, is from 12 to 15 billion in local currency annually.
Pension for foreigners
Law of the Russian Federation No. 167 of December 15, 2001 “On compulsory pension insurance in the Russian Federation”, as well as Federal Law No. 45-28-I of February 19, 1993 “On refugees”, foreigners and persons who followed to the territory of Russia for protection from persecution based on national, religious, racial grounds or in connection with military operations are entitled to receive government benefits. Payments are provided in insurance cases stipulated by law in the form of payments:
- to the storage part;
- social Security;
- state maintenance;
- insurance amounts.
A foreigner has the right to claim any of these parts if there are grounds established by law, established by:
Federal Law No. 242 “On funded pensions”;
Federal Law No. 400 “On insurance pensions”.
Expert opinion
The responsibilities of every employer, organization or individual entrepreneur include deductions from the labor income of a foreign citizen to the budget of the Russian Federation for income tax in the amount of 22% of amounts received from any sources in Russia. This requirement is provided for in Article 22.1 of Federal Law No. 167.
Ivanenko I.R., social service employee
Benefits and allowances in Armenia
In Armenia, there are several types of benefits that are paid to certain citizens. They are as follows:
- Child support allowance.
- Benefits for low-income families.
- Benefit in the form of maternity capital.
Each of the benefits provided represents a certain fixed amount determined by the state. However, this year a number of reforms regarding benefits have been adopted, and the main goal of the reform is to increase the amounts paid to needy citizens.
According to the adopted change, now the basic amount of benefits for one family is about 18,000 drams. It should also be noted that this amount and the purpose of benefits are generally determined by the place of residence of the family, as well as the amount of income for the family as a whole. And now it is planned to increase the amount of preferential payments by approximately from 5,500 to 8,000 drams.
Russian citizenship for retirement
Persons who have Armenian passports can obtain Russian citizenship in a simplified manner under the Compatriots Resettlement Program. The following can take part in it:
- Persons residing on the territory of the USSR, in Armenia, which is part of the former union state;
- If you have immigrant relatives from the republics of the former Union.
- Those who are on pensions due to reaching the age when they can go on vacation, according to the laws of Armenia, if during the USSR they were forced to leave the borders of the union state.
Important: the simplified procedure assumes that it is possible to submit an application for a Russian passport after issuing a temporary residence permit. This period usually occurs after a year of residence in the Russian Federation on the basis of a temporary residence permit. There is no need to wait for a residence permit to be issued. Thus, the period for acquiring citizenship is significantly reduced. The only condition is mandatory confirmation of a residence permit.
Retirement age in Armenia
Now let's talk about retirement age in a country like Armenia. According to the decision taken by the state, the retirement age in the country is equal for both men and women. Thus, any citizen of Armenia has the right to retire at the age of 63.
Elena Smirnova
Pension lawyer, ready to answer your questions.
Ask me a question
However, recently the country is beginning to think about raising the retirement age of citizens retiring in 2021. This decision is connected with the fact that in the future, namely in 2023, the amount of money for pensions will increase significantly, and the amount will increase by 20 billion drams. And the total amount of pension payments will be 230 billion.
Based on the statement of the country's Prime Minister, increasing the retirement age is an inevitable decision that the country simply needs. It is planned to increase the age slightly, but only by 2 years. And in the near future, the retirement age will be 65 years.
Number of pensioners in Armenia
International statistics show that among all the CIS countries, Armenia has the oldest population. How many pensioners are there in Armenia? In 2018, more than 446 thousand elderly people were registered, despite the total population of the country being about 3 million people. Thus, every sixth Armenian receives pension contributions.
Hovhannes Sahakyan, head of the social security service, said that according to the Ministry of Labor, the number of pensioners will grow every year and will increase by an average of 2,500 people.
Average and minimum pension amounts in Armenia in 2021
To begin with, it is worth saying that pensions and their amount are deducted taking into account the following criteria, namely:
- Have at least 25 years of work experience;
- Loss of a breadwinner in a family;
- Due to reaching retirement age - 63 years.
There is also a minimum pension that every pensioner is entitled to - 6,000 rubles monthly. Due to the fact that almost every citizen has the right to preferential payments, the total average pension amount is 8,000 rubles .
In connection with the planned reform in the country, the state is going to increase the pension by 360%, which will ultimately amount to 600 euros monthly , instead of 96 euros previously.
Minimum and average pension
At the end of 2021, Prime Minister of Armenia Nikol Pashinyan announced an increase in the minimum pension. From January 1, it was supposed to be 600 euros, which is more than 300 percent higher than last year. According to the politician’s comments, this level of minimum pension in Armenia in 2021 will improve the well-being of citizens and put the country on the path to European development.
However, later the Prime Minister had to apologize to citizens for failing to raise social payments to the promised level. The monthly pension in Armenia was 550 euros (about 40,000 in rubles), which is 50 euros less than what the government promised. He cited a 20 percent reduction in the cost of utilities as one of the reasons, while the IMF offered good loan conditions only for a 10 percent reduction. When asked what the average pension is in Armenia in 2021, the Prime Minister said - from 550 to 1000 euros.
In the next 5 years, the government promised to raise the indicator to the level of Germany, France and other leading European countries. An annual pension increase of 100-200 euros is planned.
An additional bonus for length of service is also provided for the minimum deduction amount, which increases the final amount. Also, the total amount of the pension can be increased due to the voluntary funded part.
There are 2 voluntary savings funds that promise to increase the investment size by 5 percent:
- Amundi (France)
- C-Quadrat (Germany).
There are no plans to raise the retirement age in Armenia for women and men in the next 5 years.
Average prices in Armenia
Those wishing to travel by car should take into account that gasoline costs will be very high. At a gas station you will have to pay about 350 drams (45 rubles) for AI-92, and the cost of AI-95 reaches 370 drams (47 rubles) per liter. But tariffs for public transport and taxi prices are not incredibly high, since all urban and the vast majority of personal transport have been converted to liquefied gas. Therefore, the cost of a kilometer of taxi travel in the capital of the republic, Yerevan, will cost about 90 drams (11 rubles).
Tourists note that prices in Armenia, compared to Russian ones, are quite affordable. Groceries in supermarkets cost less. Life in Yerevan is cheaper than in Gyumri (Leninakan in Soviet times). The imbalance is due to the fact that this city is the second largest and is considered the cultural capital of the country, attracting a large number of foreign tourists.
The food in the restaurants has amazing taste and freshness; the average bill for dinner for two is unlikely to exceed 20-25 thousand drams (about 3 thousand rubles). Prices for cognac depend on its brand and age. Ten-year-old Ararat will cost 2,200 in rubles, Noah of the same vintage will cost about 1,700, but you can also buy a five-year-old Ararat for only 800-900 rubles per bottle. Below is a comparison table of prices in Yerevan and Gyumri (in USD).
| Gyumri | Yerevan | |
| Bread | 0,6 | 0,53 |
| Cigarettes | 0,85 | 0,8 |
| Potato | 0,54 | 0,31 |
| Water (volume 1.5 l) | 0,64 | 0,4 |
| Lunch at McDonald's | 5 | 2,5 |
| Cheese | 5,64 | 4,0 |
| Utilities, apartment 80 m2 | 97,77 | 50 |
Americas
On the American continents, the leader in terms of life expectancy is the United States, where it is 67 years for both men and women. Average age life indicators: men – 77 years, women – 82 years.
In Canada, the life expectancy rate is lower - 65 years. But Canadians live longer than their American neighbors: 80 - m., 84 - w.
Latin American countries generally adhere to the rule that women retire earlier than men. The difference is usually the “standard” 5 years.
The exception is Jamaica, where both men and women retire at age 60. At the same time, the climate has a good effect on the lifespan of the local population: 74 years for men, almost 79 years for women.
Life expectancy equal to 65 years for men and 60 years for women is established in Argentina (life expectancy - 73 for men and 80 for women), Brazil (71.5 and 79, respectively), Chile (77.5 and 83.5) .
Military pension
In all CIS countries, from January 1, pensions are increasing for those who served in the army in their states or in other countries of the post-Soviet space. Monthly accruals for people who have become military pensioners are formed taking into account the following factors:
- Experience.
- Areas of employment.
- Salary level while serving in the army.
- Allowances.
- Contributions.
- Social status in society.
- Pensioner categories.
In Belarus, when compiling a pension salary for military personnel, they take into account length of service, length of stay in the army, and level of earnings. Now the minimum pension is 1,474 Belarusian rubles (4,422 Russian).
The old-age pension is accrued to military personnel in the amount of 20% of the salary previously received, to which 20 to 25% are added. The amount of payments does not change if the pensioner moves to another place of residence. It is imperative to notify the Pension Fund about the move in order to properly process the transfer of the pension to another region.
In 2021, an increase in such social payments is not observed and is not planned in Belarus, since the country is in an economic crisis.
In Kazakhstan, after the reform, pensions are not accrued to all military personnel. First of all, the length of service, the category to which the pensioner belongs, and social contributions are taken into account. There are the following categories of military pensioners:
- Work experience in the army as of January 1, 1998 was more than 10 years. The pension is calculated in the amount of 50–60% of the salary received.
- Less than 10 years of experience as of January 1, 1998. The pension will be 20% of the salary.
- Start of military service after January 1, 1998. Pension accruals are equal to 3–5 thousand tenge. There is no special state support provided, since it is not provided for by pension legislation.
Military personnel in Kazakhstan must contribute 20% of their salary to the pension fund. If you serve for about 20 years, the monthly pension will be 4 million tenge.
First of all, pensions of soldiers and warrant officers will be reviewed. Then it will be the retirees' turn.
All payments to military personnel who resettled after service in their home country must be maintained in accordance with the national legislation of the country where they served. In the CIS countries, this is provided for by a system of treaties designed to protect former USSR military personnel. At the same time, they can receive a pension in their homeland.
