How is a pension formed?
The size of a citizen’s pension directly depends on his income and length of work.
The calculation of pensions includes not only activities under employment contracts, but also work under civil contracts and periods of entrepreneurial activity. The key condition is the deduction of insurance contributions for the formation of a future pension. Pension points and the amount of pension are influenced by several indicators:
- The insurance period is the periods during which a citizen was an insured person in the pension system. These are not only years of labor activity, but also periods during which a citizen could not work: maternity leave, unemployed period (through the labor center), social activities, etc.
- Earnings amount. The amount of contributions towards the formation of a pension depends on the amount of wages. The more earnings, the higher the amount of deductions. For employed citizens, contributions are paid by the employer. Self-employed people and traders pay their own contributions.
- IPC value. This is the number of pension points accumulated over a lifetime. Points are awarded on an individual basis, depending on the insurance period, salary and grace periods.
- Preferential grounds. Working under special conditions allows you to apply for payments ahead of schedule. All types of benefits are enshrined at the legislative level (Law No. 400-FZ). For example, representatives of preferential professions (medics, teachers, law enforcement officers), workers of the Far North, mothers of disabled children and others retire earlier.
- Amount of additional contributions. Citizens have the right to contribute additional funds to the formation of their future pension. Additional contributions are paid by the employer (voluntarily or compulsorily - by law).
- Age of application for benefits. Retirement may be delayed. That is, apply not at the time of retirement age, but later. Additional points are awarded for each year of deferment. The amount of payments increases.
The region of residence also influences the size of pension benefits. For example, special territorial coefficients and premiums are provided for residents of the Far North. Similar surcharges, but in a much smaller volume, are provided in other regions.
