New information about pensions for working pensioners: how they are calculated and what you need to know

In our state, people are not prohibited from working even after they retire and begin receiving an old-age pension. However, the legal status (rights, obligations, guarantees and benefits) of working and non-working pensioners is quite different in some respects.

From this article you will learn:

• who is a working pensioner based on the provisions of the law;
• is it possible to work in retirement without losing state benefits;
• does the size of the pension depend on whether the elderly person works (pension indexation);
• what benefits are entitled to a pensioner who is working;
• Is it profitable to work while retiring?

Which pensioners are considered working?

A working pensioner is a person who has already acquired the right to receive an old-age insurance pension, but continues to work.

1. The person has reached retirement age and has already been granted an old-age pension in the general manner or early.
2. The person continues to work officially - he is officially employed. To be more precise, insurance premiums are paid for the person, and this period of work is counted towards the insurance period.

Insured persons include, in particular, citizens:

• working under employment contracts, civil contracts, contracts related to intellectual property and copyrights;
• self-sufficient workers;
• are members of peasant farms;
• who are members of indigenous communities;
• clergy, etc.

If a pensioner has the status of an individual entrepreneur, is he considered to be working?

According to tax legislation, individual entrepreneurs (IP) are required to independently pay insurance premiums for compulsory pension insurance (compulsory pension insurance). In Art. 7 of the Federal Law “On OPS in the Russian Federation” of 2001 states that insured persons include citizens who independently provide themselves with work. These include individual entrepreneurs, lawyers, notaries, and arbitration managers.

This means that a retired entrepreneur belongs to the category of working pensioners.

Is a self-employed pensioner considered to be working?

In 2020, the Legislative Assembly of the Russian Federation adopted Federal Law No. 422 on the introduction of a new special tax regime - “Professional Income Tax”. It was popularly called the “self-employment tax,” and accordingly, its payers began to be called “self-employed.”

REFERENCE: At first, the regime was introduced as an experiment only in four constituent entities of the Russian Federation: Moscow, Moscow Region, Kaluga Region, and the Republic of Tatarstan. From January 1, 2020, the experiment was extended to another 19 regions, in particular, St. Petersburg, Leningrad Region, Krasnoyarsk Territory, Novosibirsk Region, etc. From July 1, 2020, the regime is valid throughout Russia.

Self-employed is a citizen or individual entrepreneur who receives income from activities in which he does not have an employer or employees. In this case, you need to download the “My Tax” application and register as a professional income tax payer.

As a general rule, self-employed citizens, including individual entrepreneurs who have chosen a special tax regime, are not payers of insurance premiums. Therefore, in this case they cannot be recognized as working pensioners.

However, Art. 29 of the Federal Law “On OPS in the Russian Federation” speaks of the possibility of a self-employed citizen to voluntarily enter into an OPS relationship. In this case, the self-employed pensioner will pay insurance contributions to the Pension Fund and, therefore, will be recognized as a working pensioner.

Is a pensioner an employee if he is the chairman of the HOA, SNT, or the founder of the NKP?

Very often in practice, questions arise about whether the chairman of the HOA/SNT, the founder of the NCP (non-profit partnership) are an employee of the organization. And, as a result, do you need to pay insurance premiums for them?

In the summer of 2020, the Supreme Court of the Russian Federation dealt with the chairman of the HOA. He pointed out that the chairman of the HOA is not an employee of the partnership, therefore there is no need to pay fees for him. Consequently, the retired chairman of the HOA cannot be recognized as working.

The Supreme Court was guided by the following logic.

1. The chairman of the HOA is elected from the board of the association or directly by the general meeting of the house itself. The board is an executive body subordinate to the general meeting of apartment building residents.
2. The chairman acts on behalf of the HOA in the interests of all members of the HOA and monitors the performance of their duties by other bodies of the partnership.
3. An HOA at its core is a form of self-organization of citizens for the purpose of managing a home. The members of the board and its chairman are the same members of the HOA as other residents of the apartment building. This means that when managing the house, they also act in their own interests.
4. In the management relationship of the HOA there is no person who could be qualified as an employer. The HOA is based on equal membership of the homeowner in the apartment building. Homeowners association bodies also act in their own interests. Therefore, such self-government relations cannot be called labor relations.
5. Even if the chairman receives money, this cannot be considered as a salary. Cash by its nature is a reward for participation in the management of apartment buildings.

SNT is an organizational and legal form of a legal entity similar to an HOA. SNT, like homeowners' associations, are created for joint ownership of property. Therefore, by analogy with the chairman of the HOA, the retired chairman of the HOA cannot be recognized as working.

The issue will be resolved with the founder of a non-profit partnership in the same way as with the chairmen of the HOA and SNT. The essence of the NCP is that several citizens (partners) unite to achieve common goals (carrying out common work, protecting common rights, etc.). All members of the NCP are partners, and there can be no labor relations between partners. Therefore, the pensioner who is the founder of the NKP will not be recognized as a working pensioner.

How to properly register a pensioner for work

The situation is becoming quite common when, even after reaching retirement age, a person has a desire to continue his active work activity at his place of work. In this regard, many who want to continue working should know that they, like non-workers, can continue to receive their labor pension, without imposing any kind of restrictions on it. Old-age pensioners, like all other age categories of people, can be dismissed from their positions both on their own initiative and on the initiative of the employer, but only in accordance with the general rules specified in the Labor Code of the Russian Federation.

Pensioners are people who are assigned and paid a pension. In life, we are accustomed to thinking that these should only be older people. But the definition and classification of pensioners is much broader.

The category of working pensioners includes persons for whom employers pay insurance premiums and who carried out official labor activities as of the last day of the reporting campaign for employers to submit personalized accounting information to the Pension Fund.

Everyone knows that working pensioners are infringed on their rights. They are not paid part of the pension, they receive less compensation than those who do not work. Even the president in his address focused on non-working pensioners. Those who work are again, as it were, on the sidelines with them enough for life. This is essentially an infringement of the rights of a working pensioner.

Why aren't pensions indexed for working pensioners?

One of the guarantees for maintaining a normal standard of living and financial condition of older people is the indexation of pensions. Pension indexation means an annual increase in pension payments by the consumer price growth index (Part 6, Article 16 of Federal Law No. 400 “On Insurance Pensions”). In other words, with the help of indexation, the state helps pensioners “smooth out” the effects of inflation.

REFERENCE: The total amount of the insurance pension = fixed part (established by law) + insurance pension (depending on length of service, points, IPC). The fixed part of the pension and the cost of one pension point are indexed, with the help of which the amount of old-age insurance benefits is calculated.

However, indexation of the fixed part is due only to non-working pensioners. Since 2020, the annual increase for working persons receiving an old-age pension has been frozen on the basis of Federal Law No. 385 dated December 29, 2015. This act introduced Article 26.1 into Federal Law No. 400, which established the following: “pensioners carrying out <...> activities, during which they are subject to compulsory pension insurance<…>, the amount of the insurance pension, fixed payment to the insurance pension <…> are paid in the amount calculated <…> without taking into account indexation (increase) ... ".

REFERENCE : The suspension of indexation of pensions for working pensioners was associated with a budget shortage. The implementation of the pension reform in 2020 and the increase in the amount of VAT allowed certain amounts to be accumulated, so it is planned that indexation of insurance pensions will soon be returned to working pensioners. Read more about this below.

Let's look at how the size of the pensions of working and non-working people has changed in order to understand how much money a working elderly person loses as support from the state. For the calculation, we took a citizen who has accumulated 120 pension points*.

Year of indexation	Amount of fixed payment (including indexation)	Indexation percentage	Pension point cost	Non-working pensioner	Working pensioner
2014	3935,00	0,063 %	64,10	11 627,00	11 627,00
2015	4383,59	11,40 %	71,41	12 952,79	12 952,79
2016	4558,93	4,00 %	74,27	13 471,33	12 952,79*
2017	4805,11	0,00 %	78,58	14 234,71	12 952,79*
2018	4982,90	3,70 %	81,49	14 761,70	12 952,79*
2019	5334,19	7,06 %	87,24	15 802,99	12 952,79*
2020	5686,25	6,60 %	93,00	16 846,25	12 952,79*

ATTENTION : In practice, accumulated pension points are recalculated annually, so the size of the pension of a working pensioner will increase due to an increase in the number of points.

The example shows that a working pensioner in 2020 lost about 500 rubles every month. In 2020, this amount is already about 4,000 rubles. In general, from 2020 to the end of 2020, a working senior citizen will receive less pensions in the amount of more than 120,000 rubles.

Finnish pension system

Finns who are on a well-deserved retirement receive several types of payments. Insurance premiums of hired workers and individual entrepreneurs are sent to state or private pension funds, companies or cash desks. The legislation obliges employers to insure their employees aged 17-67 years in excess of monthly earnings of €58.27.

Labor pension in Finland

Both Finnish citizens and foreigners who have worked in the country for a certain time can apply for labor benefits. Residence in the country or possession of its citizenship is not required. This is the most common type of pension benefit in the country (62% receive it).

National pension (old age) in Finland

The national pension (or old-age pension) is paid from the budget and is assigned to those who either have not earned enough to pay for their labor, or its amount is less than the minimum, which for single pensioners is €1299.88, and for family pensioners – €1157.71 (i.e. this is the minimum amount of the labor pension; if it is higher, then the national pension is not paid at all; if it is lower, the national pension is calculated individually). The rule applies to both native residents and foreigners whose duration of residence in the state exceeds 5 years. For EU citizens this period must exceed 3 years.

The maximum amount of the national pension is assigned in the absence of a labor pension. For a single applicant this amount is €628.75, for a family applicant – €557.79. When receiving a labor pension, the amount of the national pension is calculated individually.

Guaranteed pension in Finland

In cases where the amount of labor and national pensions is less than the subsistence minimum, the pensioner receives the missing payment, which is called guaranteed.

What benefits are available to pensioners who continue to work?

Russian legislation contains many benefits provided for persons who have reached retirement age and have received the right to receive an old-age pension. Even if a pensioner continues to work, he is also entitled to a number of benefits in the field of labor, tax, pension relations and, of course, social benefits. Let's look at them in more detail.

Labor

1. The right to additional unpaid leave for up to two weeks (Article 128 of the Labor Code of the Russian Federation).
2. The right to be released from work for 2 days annually to undergo medical examination. Pensioners do not have to worry about missed days, because they retain both their place of work and their average earnings (Article 185.1 of the Labor Code of the Russian Federation).
3. Possibility of dismissal without prior notice (Article 80 of the Labor Code of the Russian Federation). Unlike other employees, who are required to notify the employer 14 days before dismissal and work for these two weeks.

Tax

1. Personal income tax . Since wages are subject to income tax, older people have the right to all tax deductions specified in the Tax Code of the Russian Federation (return of part of the money paid as income tax): standard (Article 218 of the Tax Code of the Russian Federation), social (Article 219 of the Tax Code of the Russian Federation ), property (Article 220 of the Tax Code of the Russian Federation). For example, a deduction for the purchase or construction of residential premises, for the acquisition of land, for paying for children’s education, for treatment, a deduction for “Chernobyl victims”, disabled people since childhood, etc. And non-working elderly citizens cannot take advantage of tax deductions, because the insurance pension is a source income is not subject to personal income tax.
2. NIFL . According to Art. 407 of the Tax Code of the Russian Federation, all pensioners, including those employed, have the right to a tax break on property tax. The benefit lies in the fact that an individual is completely exempt from paying tax on one piece of his real estate (apartment, land, house, etc.). The main requirement is that the building should not be used for business activities.
3. Transport tax . Transport tax is regional, so all benefits are established at the level of legislation of the constituent entities of the Russian Federation. In many regions, for example, in St. Petersburg, Krasnoyarsk Territory, pensioners are exempt from paying tax on one vehicle. At the same time, as a rule, requirements for the vehicle are established: no more than 100–150 horsepower.
4. Land tax . All elderly people - recipients of old-age pensions - have the right to receive a land tax deduction in the amount of the cadastral value of 600 m2 of their plot.
5. Exemption from payment of state duty when filing a lawsuit against the Pension Fund of the Russian Federation regarding violation of pension rights.

Social

Social benefits are provided at the level of legislation of the constituent entities of the Russian Federation. In almost every region, a working pensioner can count on:

• for a discount on payment for housing and communal services;
• free travel on public transport on routes within the city and within the suburbs;
• compensation of part of the contributions for major repairs.

IMPORTANT: This benefit is not available to everyone. The category of people eligible for social benefits is established by the legislation of specific regions.

Pension

1. Annual (in August of the current year) recalculation of pensions, taking into account accrued pension points for length of service (more on this below).

Medical

1. Free annual medical examination.
2. Free vaccinations against viral diseases.
3. Some categories of citizens have the right to receive free medicines or discounts on medications and equipment.
4. In some regions of the Russian Federation, pensioners have the right to free dental prosthetics.

What awaits working retirees in 2020?

No changes are expected in the legal status of working pensioners in 2020. They, as before, will receive a pension without indexation. There is only one exception - from July 2020, guardians will be equated to the category of unemployed senior citizens.

However, deputies recently promised to lift the moratorium on indexation for working older people. This statement was made at the end of July 2020 at the summing up of the spring session of the State Duma of the Russian Federation. The introduction and consideration of amendments to the Federal Law “On Insurance Pensions” is planned for the fall of 2020.

REFERENCE: The abolition of indexation is associated with the adoption of amendments to the Constitution of the Russian Federation (Article 75), which establishes the right to an annual increase in pensions for all citizens without exception.

According to experts, it will take time for the bill to go through all stages of adoption in the State Duma of the Russian Federation, be approved by the Federation Council of the Russian Federation and signed by the President of the Russian Federation. Therefore, changes in the situation of working pensioners should be expected no earlier than January 1, 2021. Pavel Krasheninnikov, chairman of one of the committees of the State Duma of the Russian Federation, said that indexation amendments will be taken into account when adopting the law on the federal budget for 2021. In other words, the costs of indexing pensions for working pensioners will be included in the federal budget spending plan for 2021.

Recalculation of pensions for pensioners continuing to work since August 2020

The total amount of the old-age pension consists of a fixed part and an insurance part. The insurance part depends on the number and cost of the IPC (pension point). Pension points are accumulated by the employee through contributions of insurance contributions by the employer to the Pension Fund of the Russian Federation. Therefore, the more points, the larger the amount of the insurance pension.

REFERENCE : The number of points directly depends on the employee’s salary level. The higher it is, the more points he accumulates.

Accordingly, if a pensioner continues to work, he continues to accumulate points. As the number of points increases, the insurance part of his pension also increases. And if the fixed part is not indexed, then the insurance part is recalculated and increased annually, taking into account the pension points accumulated over the year.

This recalculation occurs in August of each year. Therefore, it is in August that a working pensioner can count on an increase in his pension due to an increase in its insurance part.

IMPORTANT: Recalculation is carried out automatically by Pension Fund employees. There is no need to submit any application. However, if a lot of time has passed since August 1, and the amount of the pension has not been recalculated, you should call the fund branch at your place of residence and find out what the problem is. PFR hotline phone number: 8 (800) 600-44-44.

Increase in pensions for employed pensioners

Many retirees do not interrupt their careers after taking their post-work rest. Then employers still make contributions to the compensatory pension fund.

Taking these deductions into account, the Pension Fund recalculates benefits every year. Therefore, when the length of service and the number of directed insurance contributions change, pension savings also change. And therefore the pension itself increases.

Recalculation of future payments to employed pensioners on the basis of insurance contributions is carried out automatically annually from 1.08.

What are the restrictions on the above persons:

1. when recalculating, the maximum possible score is no more than 3 for employed pensioners who do not have pension savings in the corresponding year;
2. for employed pensioners, whose contributions are distributed as follows: 10% for the insurance component, and 6% for the funded component, the maximum allowed score is 1.875.

Attention!
Recalculation of pensions for employed pensioners occurs once a year, no earlier than 1 year from the date of the previous recalculation. Recalculations

The recalculation of benefits for employed pensioners is the dynamics of pension volumes due to the growth of the pension base (parameters of insurance investments) of workers. This is possible if the person was officially employed and insurance contributions were made to the Pension Fund for him.

Recalculation of benefits is carried out as follows:

SPst = SPstp + (IPKi / K / KN x SPK),

Where:

• SPst - insurance payments;
• SPstp - payment parameters as of 31.07, in which the recalculation is carried out;
• IPCi - individual pension coefficients for 1.01 years in which benefits are recalculated;
• SPK - the price of 1 pension coefficient on the day from which the amount of payments is recalculated;
• K - coefficients for calculating the parameters of benefits calculated according to Part 11 of Art. 15 of the Law “On Insurance Pensions”;
• KN - coefficients for determining the parameters of age-related and disability benefits equal to 1, and for calculating pensions in case of loss of breadwinners - the number of dependents of deceased breadwinners as of 1.08. the year in which the survivor benefit is recalculated.

Cumulative algorithm for employed pensioners

Parameters of post-employment savings annually 1.08. edited. The amount of payments is affected by:

1. calculation of all types of insurance deductions;
2. co-financing of pension savings;
3. maternity capital funds aimed at forming a future pension.

Be sure to read it! How can a pensioner get 2,000 rubles from social security?

If these factors were not taken into account to calculate the parameters of the funded part of the pension when it was assigned or during the previous editing.

Editing is done in this way:

NP = NPk + PNk / T,

Where:

• NP - funded benefit;
• NPk - NP parameters as of July 31. the year in which the revision takes place;
• Pnk - pension savings accounted for in individual personal accounts or in the pension accounts of insured non-residents, for 1.07 years in which the edition is being made;
• T is the expected period (in months) for the accrual of the NP, used to calculate its parameters, as of 31.07 of the year in which the revision takes place.

Indexation of payments to employed pensioners in 2020

In 2020, pensions were not indexed for disabled workers. This decision is still in effect today.

If a pensioner resigned from October 1, 2015 to March 31, 2016, he had to notify the Pension Fund about this by submitting a corresponding application and attaching supporting documents. After reviewing the application and assigning a pension, the citizen will receive an indexed pension payment starting next month.

Important! Such an application had to be submitted only before May 31, 2016. After this date, employers provide the necessary documentation on their own.

After dismissal, pensioners will receive increased pensions, taking into account the indexation that occurred during the period of their employment.

Will pensions be canceled for working people?

Proposals to abolish the pension benefits of working pensioners have been discussed for several years now.

The Ministry of Labor and Social Protection has created a draft Federal Law “On the peculiarities of paying pensions to working pensioners,” explaining which of the disabled workers will have social payments canceled and whether this can happen in the near future.

It is assumed that insurance payments will be suspended for elderly people who continue to work if the total volume of payments and other remunerations is equal to or more than 1 million rubles. in a year.

How to resign correctly for a pensioner?

If a working pensioner decides to resign of his own free will, the procedure for terminating the employment contract will be regulated by the general norms of the Labor Code of the Russian Federation. In other words, the procedure for dismissal will be the same as when terminating an employment agreement with any other employee.

The only exception for a pensioner is that he is not required to notify the employer in advance (14 days before dismissal). If he leaves work due to retirement, he can leave on any day without the work required by the Labor Code of the Russian Federation.

Dismissal procedure.

1. A pensioner writes a letter of resignation in free form. It must indicate the name of the employing organization, information about the resigning employee, a request for voluntary resignation, indicating the date from which the employee intends to cease performing his duties. The application must be signed and dated at the end. A sample application can be downloaded here.
2. The employer must accept the application, issue a dismissal order and familiarize the person leaving with it against his signature.
3. On the last working day, settlements are made (salary, compensation for unused vacations) with the employee and all documents related to work are issued to him (work book, etc.).

What happens to my pension after dismissal?

After the dismissal of a pensioner, the Pension Fund must recalculate his pension benefits, taking into account indexation. Payment of pensions, taking into account indexation, will not begin immediately, but three months after dismissal. However, the amount that the pensioner does not receive in these three months will be paid in addition.

REFERENCE : This additional payment did not arise immediately. Until 2017, namely the adoption of Law No. 134-FZ on amendments to Art. 26.1 of the Federal Law “On Insurance Pensions”, retired pensioners did not have the right to receive additional payment for the period during which they were considered unemployed, but their pensions were not indexed.

Why does indexation begin only after three months? The decision to pay the indexed security is made by the Pension Fund the following month after receiving information about the termination of the employment relationship. For example, if a citizen quits his job in August, he will begin to be considered unemployed only in September (this is the first month after termination of employment). In September, the Pension Fund will not receive information about work for September (information is submitted only for working pensioners), so only in October (the third month) will the Pension Fund decide that from November the pensioner will receive a full pension. The pensioner will receive additional payment from September - the month from which he is considered unemployed.

Pension amount in Finland

Factors influencing the amount of the pension payment are average monthly earnings and the number of years worked. It is believed that in 38 years you can save up a relatively large amount.

It should be noted that the contributions of the future pensioner are accumulated in pension funds, taking part in investment projects. This leads to an increase in the amount of pension savings. Also, the amount of savings is influenced by the increasing coefficient, which increases with the age of the applicant. The savings indexation mechanism is used to protect them from inflation.

Average pension in Finland

The average labor pension in Finland according to data for 2020 was €1,656. For men it is €1871, for women – €1241. The most economically prosperous areas are the region of Helsinki and the Åland Islands. According to data for 2020, the average benefit increased to €1,716.

Minimum pension in Finland

The total amount of labor, guaranteed and national pensions cannot be less than the minimum subsistence level - €775.27.

If the pension is lower than the subsistence minimum

If the amount of labor payments is less than the subsistence minimum, the pensioner is additionally paid an incomplete national pension. If the work benefit cannot be calculated, the national pension is paid in full.

Example from BBQcash. The pensioner earned a labor pension at the rate of €120 per month. The size of the pension payment received from Russia is €150. Then the amount of the national benefit will be: €628.75 – €120 – €150 = €358.75. However, the minimum subsistence level of €775.27 is €146.52 (€146.52 = €775.27 – €628.75). The missing amount will represent the amount of the guaranteed pension.

The procedure for recalculating pensions after dismissal

After the dismissal of an elderly citizen, the Pension Fund must recalculate his pension, taking into account indexation. The Pension Fund independently initiates this process based on the data it receives from the employer. There is no need to write a request for recalculation.

IMPORTANT: Pension recalculation does not imply that the citizen will receive all under-indexed amounts for the period of work. The pension benefit will be recalculated for the period after dismissal, taking into account the current year fixed payment values ​​(indexed) and the value of the pension point.

How to find out how much your pension will increase after dismissal?

So, after termination of the employment contract, the elderly person becomes unemployed. From now on, he has the right to indexation of his pension. This means that his pension will increase. There are two ways to find out how much your benefits will increase after you quit.

1. Calculate yourself.
2. Order a certificate on the Pension Fund website.

Self-calculation

The amount of the insurance pension = the amount of the indexed fixed payment + the number of pension points (IPC) × the value of the pension point (SPK).

In 2020, the fixed payment amount is 5,686.25 rubles, and one point is 93 rubles. Knowing these values ​​and the amount of your points, you can easily calculate the new amount of your pension.

Help from the Pension Fund

Each pensioner has a “Personal Account” on the official website of the Pension Fund. You can order a statement there, which will indicate the amount of your pension.

Algorithm for obtaining help:

• go to your Personal Account on the Pension Fund website;
• go to the “Pensions” section;
• click on “Order a certificate (extract) about the amount of pension”;
• click "Request".

The result of the request can be found in the “Request History” section.

This is what the help looks like:

Financial preparation for retirement

First, you need to decide on the amount that a pensioner will need to retire. To do this, calculate how much money you need monthly to live without needing anything. Of course, you will receive pension payments, but they are not always enough for a full life. You need to understand that each person has his own level of norm and needs, and therefore it is quite difficult to determine a “universal” amount.

You need to get information about how much the social security system will charge you. This amount is added up taking into account the earnings that the pensioner had before retirement. Every year, all employees receive brochures that indicate the standard monthly contributions.

It is worth clarifying the information about what level of earnings is required to receive an allowance under the social security system. The resulting amount must be multiplied by 12 and divided by the number of years that the pensioner expects to live upon retirement.

In this way, you can get the amount that should be earned in a year. It is possible that the resulting number will be exaggerated, since it is impossible to take inflation into account.

The size of the pension depends on the employee’s length of service, as well as his salary.

From the amount that a pensioner will need per year, you need to subtract the amount that he is entitled to every year under the social security system. The resulting value must be calculated annually from investment companies and the pension plan.

There are various investment options to consider. If young people still have a lot of time before retirement, then they can invest money in securities, making contributions up to 65%; for older people, who may not have time to repay what they have lost, it is better not to make contributions of more than 35%. It is also worth paying attention to the short-term capital market and an investment account with interest at money market rates.

Important ! It's worth visiting your local banks to find out more about their offerings. Most often, they offer to create a personal pension account and personal pension provision. But a decision should be made only after each bank’s proposal has been considered.

You can invest to increase your funds

You can contact the human resources department at your place of work and ask for information about what pension programs management offers. Often, an employer may offer a 401(k) or 403(b) plan. At the same time, the employee may be entitled to receive subsidies and participate in share capital.

Money shouldn’t lie around like a dead weight, which means it needs to be invested somewhere. Especially during periods of difficult economic situations. For example, you can invest in foreign currency or real estate.

Important ! It is necessary to free yourself from debt obligations even before retirement. The sooner you can pay off your mortgage or loans, the freer you will feel in retirement. In addition, you can safely bequeath your property to your heirs.

It’s better if the money doesn’t lie “dead weight” - it’s worth investing

If a pensioner is planning to buy a new home in which he will have to retire, then he should consider whether he will be able to maintain it after retirement. When choosing a private house, you should take into account that its maintenance will cost more than living in an apartment. It is necessary that the housing be equipped with everything necessary for the residence of an elderly and possibly sick person.

It would be a good idea to take out a life insurance policy for both spouses. In the event of the death of one of them, the other will receive a certain amount of money, which can replenish pension savings.

What if you go to work again?

After a pensioner’s pension has been increased due to recalculation, nothing prevents him from getting a job again. His pension amount will remain the same, that is, it will not be reduced. However, at the next annual indexation, the size of his pension will stop growing again (he will be a working pensioner and his benefit will not be indexed).

REFERENCE : The amount of old-age benefits is recalculated based on data provided by employers. If an older worker quits, the employer will stop paying insurance premiums for him and include him in reporting to the Pension Fund. This means that in order for a pensioner’s pension to be recalculated taking into account indexation, he must be unemployed for at least one month. For example, if a person quits in June, then he will be able to get a job no earlier than August 1. If it starts working earlier, it will be included in the reporting for both June and July, and the Pension Fund will not carry out indexation. The most profitable option for an elderly person is to quit on the last day of the month and get a job a month later from the 1st day.

In Part 8 of Art. 26.1 of the Federal Law “On Insurance Pensions” states that if a pensioner gets a job again, he will receive the pension that he received in the days preceding the resumption of work. For example, a citizen worked until May 2020. From June he will be declared unemployed and his pension will be indexed. He will receive this pension amount throughout 2020, even if he gets a job later. But, however, when the fixed part of the benefit is increased in January 2021, the working pensioner will not receive an increase again.

HELP: The next indexation is scheduled for January 2021. The increase in the fixed part will be 6.3%.

1. A pensioner can receive this increase in pension if he resigns at the end of December 2020 and starts working again in February 2021.
2. In this case, payment will be delayed (up to 3 months), but all amounts underpaid from January 1, 2021 will be paid along with the indexed pension.

Will pensions be indexed in 2020?

The government has decided on the indexation of payments to pensioners for 2018-2020. Next year pensions will rise by 500 rubles, and in three years they will increase by no more than one and a half thousand. Moreover, only non-working pensioners should expect an increase, at least next year.

According to Prime Minister Dmitry Medvedev, it is this social group that is a priority for the state, since its representatives have no other income. But working pensioners can wait until better times in the country’s economy.

What is the pension for a working pensioner in Moscow?

In Moscow, as in other regions, there are general rules for the formation of an insurance pension, which are established by federal legislation. However, regional authorities are not prohibited from establishing additional support measures for the elderly population. Working pensioners in Moscow have the right:

• for a minimum pension of not less than 12,578 rubles. for everyone, not less than 19,500 rubles. for those who have lived in Moscow for 10 years or more (must have official registration);
• receiving social supplements for disabled people, WWII participants, specialists in certain fields (medicine, education, housing and communal services, etc.);
• increase in social benefits for old age by 7%.

How much money does a working pensioner lose?

The harsh realities of life, lack of funds, and small payments lead to the fact that work for pensioners is one of the most pressing issues at the present time. People who have reached retirement age are in no hurry to leave their jobs, realizing that there is a need to provide for themselves, their children, grandchildren, and loved ones.

The government has been ignoring working pensioners lately. In this connection, they do not receive certain amounts of money, and the state does not pay because supposedly there are not enough funds.

It is more profitable for a pensioner who has already earned a pension to work unofficially; this is also beneficial for the employer. After all, the increase in pension, which is recalculated for working pensioners in August annually, is a little more than 200 rubles, and the increase due to indexation is 500-700 rubles, depending on the size of the pension, for some people it is more.

All of the above persons have the right to count on the protection and support of the state. If we talk about the retirement age, in Russia it has remained unchanged for many years. Women retire at age 60, men at 65.

If he is accepted into a civilian position, he will be paid a military pension (for length of service) and wages at the new job. In the near future, it is possible to receive two military pensions: one for long service and another for old age. The land has always been perceived as something that can feed in a critical situation. On six or even 12 acres, you can’t really roam around, you can’t build a farm, but having chickens, quails and/or putting up a greenhouse, planting potatoes, vegetables, a couple of apple trees and a few bushes of raspberries, gooseberries, and currants is fine.

Is it profitable to work in retirement - pros and cons

On the one hand, a pensioner can work and receive a pension at the same time, on the other hand, he will receive a pension much less than he should, because it is not subject to indexation. What is the best way to proceed?

To answer this question, let's look at the main pros and cons of working in old age.

Advantages

Flaws

During official work, the insurance period increases and pension points accumulate, and with them the amount of the pension. Even though the pension is not indexed, it is still paid. Thus, a working pensioner receives income in the form of old-age benefits and wages.

In many regions, a working elderly person will not be able to count on social pension supplements because he has an official source of income. The fixed part of the pension is not indexed. A working pensioner is deprived of the opportunity to apply for a survivor's pension. The right to pay travel expenses to sanatoriums, resorts, and other recreational places is deprived. Age takes its toll and there may be health problems. At the same time, the Labor Code of the Russian Federation does not provide for any relaxations in the working regime related to age.

Thus, if a pensioner’s salary and his health allow him to neglect state support, then it is more profitable to work and receive a non-indexed pension. Plus, this is an excellent opportunity to accumulate experience and points and increase the amount of benefits in the future. However, if a citizen has a good pension, taking into account indexation, various social benefits, etc., or he has health problems, or wages at work do not cover the costs of losing state assistance, then it is better to devote his old age to himself and his grandchildren and “stay at home” .

How do pensioners live in Finland?

The amount of payments is approximately 50% of labor earnings. This amount is enough to buy a car or a country house. Many older people prefer traveling around the world.

According to the Ministry of Social Security and Health, approximately 6% of pensioners in Finland live below the poverty line with a monthly income of €1,100-1,200 (82,500-90,000 rubles).

Is it profitable to work in retirement?

According to Finnish laws, you cannot receive benefits and continue to work. At the same time, if you continue working after turning 65, the amount of pension payments increases by 0.6% for each month worked. The law provides for a limit of 68 years, before reaching which the employer does not have the right to force an employee to take a well-deserved rest. Finnish citizens can therefore take advantage of the opportunity to increase their retirement income by 14.4%.

What kind of work do you need to do to get a bigger pension?

Highly qualified specialists can boast of high payments after leaving work: doctors, teachers, engineers, knowledge workers (scientists). Their pension payments range from €2300-4500.

Results

So, we have looked at the nuances of pension provision for working pensioners. Let's summarize.

1. Working pensioners are citizens who have the right to receive an old-age pension, but they still continue to work (only officially - contributions are made to the Pension Fund).
2. Working pensioners do not receive the old-age insurance pension in full - the benefit is not indexed to take into account inflation and rising prices.
3. Working pensioners retain some of the benefits that are inherent to other elderly citizens (non-working): in the sphere of labor (for example, the right to two-week unpaid leave), tax relations (deductions for personal income tax, land tax, exemption from paying personal income tax and transport tax on one object), social benefits (depending on the region).
4. The size of pensions of working senior citizens grows annually due to the fact that every August the Pension Fund recalculates the insurance part of the benefit, taking into account the pension points earned during the year.
5. If a pensioner resigns, he will be paid a pension, taking into account indexation from the month following the month of termination of the employment relationship.
6. Working in retirement, a citizen receives double income (pension + salary) and can increase the amount of his old-age benefit due to the accumulated personal income level and length of service. But here you need to look at each specific case individually: how much the citizen loses (indexation, social benefits) and how much he earns. Also, older people should not work to the detriment of their health.

The procedure for applying for a pension in Finland

To receive labor benefits, you must submit an application to the organization that has been collecting contributions for the last 2 years, or to the pension fund or KELA (the government agency responsible for social payments).

The statement may be oral. To do this, you will need to make a declaration of will by calling 020 692 202 or at a service point.

After submitting the application, a package of documents is collected, including an identity card, tax card and bank account statement. Depending on the type of pension benefit, the list of documents may differ, so it is useful to check with a tax consultant.

It usually takes one and a half to two months to process the application, after which the applicant receives a pension applicant card. Relations with the employer must be terminated by this time.