Starting July 1 of this year, the procedure for paying capitalized pensions will be different.
Photo: Svetlana MAKOVEEVA. Go to Photobank KP
From July 1, the procedure for paying out pension savings will change. These are money that is in individual accounts, either in the Social Fund of Russia or in non-state pension funds. 73 million people have them. On average, an account contains 80 thousand rubles. But some have only crumbs, while others have almost a million rubles.
This money can be received at the age of 55 (women) and 60 (men), or upon early retirement. Previously, almost 100% of payments were one-time payments. That is, the person received all the accumulated money at once. But in recent years, the proportion of those who receive payments for life has begun to increase.
To understand who to give money to at once and to whom in parts, the 5% rule worked. It can be briefly explained like this. The person was assigned an insurance pension, which depends on the length of service and the accumulated pension points. And then they calculated what proportion of total pension income the cumulative increase would take up. If it was more than 5%, payments were made for life. And if it was less than 5%, all savings were paid immediately.
It is true that the calculations have become more complicated due to the transition period for raising the retirement age. After all, those who had reached the “old” retirement age before the reform were allowed to receive capitalization funds (55 years for women and 60 for men). But the insurance company is appointed several years later. This caused confusion. They decided to remove it.
As of July 1 of this year, the procedure for paying funded pensions will be different. We decided to take as a basis the cost of living of a retiree in the country. In 2024 it will be 13,290 rubles per month. And the limit was 10% of this amount – 1329 rubles. If the monthly accumulated increase is greater, then the payment will be for life. If less, single payment.
So, now we have all the inputs to calculate how much can be received at once and how much should be received in small portions. We multiply 1329 rubles by 264 months. And we get 350,856 rubles. If your account has less, get it all at once. If it’s more, you will receive it in parts.
According to the Social Fund, the changes will increase the number of those who will be able to receive all their pension savings at once. You can see how much you have already saved in your personal account on the government services portal. There you need to request an “extract from an individual personal account.”
Our advice
How to properly manage your pension savings
An important nuance. The funded pension is not assigned automatically. To do this you need to write an application. Either through the portal of government services (if the money is managed by the SFR), or in the personal account of a non-state pension fund. From here comes the following strategy.
If you are entitled to receive the full amount, apply for a funded pension immediately. Withdraw your savings and deposit them. If the amount is above the limit and a lump sum payment is definitely not in sight, wait. There are two reasons for this.
Firstly, the later a pension is allocated, the shorter the distribution of the total amount will be. And the higher the monthly payments will be.
Second, if an extra two or three thousand dollars a month doesn’t help you, the funded pension can be used as an inheritance. The assignees receive the entire amount immediately, regardless of their volume. The main thing for them is to submit an application within six months after the death of the hoarder.
Well, for those who are still far from retirement (between 15 and 20 years), you can take a closer look at the long-term savings program (abbreviated LDS). He started acting this year. This is a legal way to increase the liquidity of your pension savings. And create an additional increase in your pension.
