Pension for most people in old age is the main source of income. And in different countries the system of these social payments is arranged differently. Below is a breakdown of how it works in Russia. You can learn more about the Russian pension system on the portal
Pension systems that exist
Distribution (in other words, solidarity)
The work is carried out by the method of generational solidarity, i.e. working citizens pay for those who retired. Such a system is beneficial for mothers with many children and those who have not saved up for old age.
This system is used in many countries, but due to life expectancy, it ceases to function. Therefore, governments are forced to reform pension systems to maintain payments.
Cumulative
Here it is assumed that pensioners are saving for their future themselves. Those. throughout his life, a person and his employer contribute part of the salary to the fund. Funds are invested and generate income that allows you to live on them in old age.
However, this option is a big drawback for citizens with low earnings, because. they don't have a lot to save. You can learn more about the funded part on the portal
mixed
This type involves a combination of distribution and accumulation systems. According to this, citizens and their employers make contributions to the fund. A certain part of them is allocated for current payments to pensioners, and the other part serves as the formation of benefits in the future.
What pension system operates in the Russian Federation?
In the Russian Federation in the period 2002-2014 there was an attempt to organize a mixed system. Pension contributions from employers were divided into parts. Since 2010, 16% of wages have been transferred to the PFR budget. This was used to pay current pensioners. Of these funds, only 6% was sent to an individual account and everyone could replenish it independently.
A co-financing program was also envisaged, in which if the annual contributions were above 2,000 rubles, the state would additionally deposit the same amount into the account and increase its size. This approach has shaped the emergence of personal retirement savings. For more information, please visit the portal.
However, over time, the difference between contributions made by employers and payments to pensioners has increased. And since 2014, work with the funded part of the pension has been suspended.And contributions from employers now go entirely to the general account of the pension fund. Those. the system returned to the solidarity format again.
Along with this, their own savings, which have already been made, remain in the accounts of citizens. As before, they can make contributions in good faith and replenish their accounts themselves.
In addition, the owners of pension savings have the right to choose for themselves who to entrust the management of these funds. And how well they are invested, such will be the pension in the future.
According to the law, a citizen can entrust the funded part to a non-state pension fund or leave it to the PFR.
Did the article help you?