The question of how the pension is calculated is quite important, which is why a very large number of citizens are concerned. Also important are such moments as its composition and types. It is necessary to touch upon issues related to the merits and demerits of state pension funds, as well as their non-state counterparts. In addition to these, you can ask a number of other equally important issues.
The General concept
Every citizen has a full right to rest, especially when it comes to deserved retirement. You can understand this in the following way: work at a certain enterprise, to which the entire working life of a citizen was given, must guarantee him material security for the period of rest. And then no one talks about the enterprise's obligations to its former employee in terms of providing such payments. This is done by pension funds, where the deductions are made by each employer during the entire work activity of the employee. The procedure for the formation, calculation and payment of pensions in the territory of the Russian Federation is carried out in full compliance with the law "On labor pensions".
Composition of pension
If we consider the question of how a pension is calculated, it should be mentioned that it consists not only of an obligatory part, but can also be supplemented with a voluntary one, and this indicates the possibility of using savings deposited in a non-state pension fund. The compulsory pension has several types, which can be called: classical old age, labor for disability, and payments related to the loss of a bread-winner. The first of them usually includes three components: basic, accumulative and insurance.
Base part of pension
Any enterprise and organization necessarily make payments to the state compulsory insurance fund, and about half of these funds are transferred to the Pension Fund. These funds are not nominal, that is, only their transfer to the fund is made, where they are usually allocated to current pension payments to already existing pensioners. This part just serves as the base, and its size depends entirely on the subsistence minimum at the moment, inflation and budgetary funds. The base part is not influenced by the length of service, wages, and other parameters. It can be paid even to foreign citizens who are permanent residents in the territory of the Russian Federation.
If we talk about how the pension is accrued, then it is necessary to consider the insurance part. From the base, it is significantly different in that it is attached to a specific person. Its size is directly dependent on the amount of contributions collected at that time, as well as on the period of anticipated payments. From each employer, compulsory contributions are received, the amount of which is 8-14% of the amount taxable for a single employee. This amount usually includes not only wages, but also other funds that the company spends on each employee individually.
How the insurance part is calculated
The insurance part of the pension is determined depending on the size of the pension capital accumulated on the personal account of the citizen, and the period of survival, that is, the time that is determined by the state as reserved for citizens after retirement. It turns out that the insurance part of the pension is the entire pension capital divided by the period of survival in months. This is the size and will be monthly payments. After the wires for retirement, the life expectancy is 19 years, which is usually quite enough. This period is used only to calculate the pension, and if someone lives more, it will not be left without security. If we talk about how the old-age pension is calculated, the law establishes that the later a citizen retires after reaching the legal age, the less time for him to survive, that is, the amount of benefits will be greater.
This part is calculated almost the same as the insurance, but in this case, the pension capital is replaced by the amount of savings. For each citizen these savings are indicated in a special part of the personal account. The cumulative feature is that it is usually placed in different investment instruments, it can be transferred to all kinds of funds to implement management. Very often it is invested in various instruments, including securities. Every working citizen has the right and the opportunity to independently manage the accumulative part of his pension, so that he can choose with which management company or fund he will cooperate to increase his savings.
Participation of non-state funds
The advantages of using non-state funds are quite obvious. Here, first of all, it is necessary to stipulate the possibility of maximally effective investment of financial resources, thanks to which it is possible to ensure the optimal efficiency of growth of the pension. Usually state funds work with instruments that are recognized as highly reliable, but this affects negatively their profitability. You can independently choose a management company from the list of those that have passed the competitive selection by the Russian Ministry of Finance. You can choose such a company once a year, filling out a special form.