An individual pension plan (IPP) is an accumulation program for a future pension, it is offered by non-state pension funds. Unlike mandatory insurance contributions, which are paid by the employer for employees at their own expense in the PFR and are paid to pensioners, citizens' contributions to such programs are paid on a voluntary basis.
The situation with state pension provision is becoming more and more complicated; with the growth in the number of pensioners, social obligations of the state are growing. In recent years, the Government has been particularly active in discussing the idea of raising the retirement age. In the end, no one is able to say when and what kind of pension you will have, and even more if it will be enough to ensure at least a minimum subsistence level. Moreover, the size of pension points, based on the number of which the FIU calculates a pension, is tied not only to wages and length of service, but also to the current state of the economy. It is possible that you will have to take care of the pension yourself, and the sooner you start saving money, the more you can expect later.
Individual retirement plans allow you to save a person with any income level. For example, the largest fund, NPF Sberbank (the fund offers IPPs in Sberbank branches), there is a program where it is enough to make an initial contribution of 1,500 rubles, and then periodically (as the client wishes) to replenish it by at least 500 rubles. For example, if you are 20-25 years old, then to receive a pension in the amount of 70% of the salary, it is enough to transfer 2-3% of income to the IPP account every month, but at the age of 36-45 years old it will already be necessary to save 5-10%.
The approximate amount of pension can be calculated by yourself using a pension calculator. Such a service is provided by most NPFs. For example, for a 35-year-old man whose salary is 55 thousand rubles and who monthly contributes only 1% of his income to the IPP account, the increase in state pension can be about 5400 rubles. The fund will make these payments within 10 years after retirement. If the same client paid 5% of the salary per month, then the non-state pension would have already amounted to 27 thousand rubles.
Of course, for citizens postponing their retirement, a tax deduction is provided - 13% of the amount of contributions, not more than 120 thousand rubles a year. For example, if you deposited 120 thousand into your retirement account during the year, the tax service should return 15.6 thousand rubles to you. You can write a statement to the accounting department of the employer about the transfer of contributions from salaries to IPP, then the tax deduction will be provided automatically.
To purchase an apartment you need a large amount immediately, but you can save up for retirement gradually. In addition, by investing in housing, you may lose if prices fall. . Putting money into a bank account, you will have to regularly renew the deposit. The bank may roll over it already on other, less favorable conditions. Non-state pension funds invest clients' money in stock market instruments - stocks and bonds. Their yield is significantly higher than that of deposits. The observance of investment rules is monitored by the Central Bank and special depositories. Clients themselves can see the structure of investment funds on their sites. The effectiveness of the investment policy of the fund can be indicated by its stable yield above the level of inflation. Last year, more than half of the funds received returns above inflation.
No one is safe from global economic shocks, but, as financiers advise, it is better to meet them with some kind of accumulation, an airbag. Those who invested in NPFs 15–20 years ago are already receiving an increase in state pension. According to the Central Bank, there are about 1.5 million people, and those who voluntarily put aside more than 5.7 million for their future retirement.
Unlike pension savings funds that are insured by the DIA, voluntary pension contributions do not have guarantees from the state. Therefore, the choice of NPFs should be based not only on its profitability, but also on reliability. In particular, it is worth paying attention to who owns it, how transparent its investment policy is, what the fund has a reputation in the pension market, how long it has been working, whether there is a fund branch in your city and whether online services are available. In addition, it is worthwhile to carefully consider the terms of the IPP agreement itself. For example, does it provide for the possibility of early withdrawal of pension contributions and received investment income. For example, standard pension programs at NPF Sberbank provide that a client can withdraw money in two years, plus half of the investment income received. And five years after the conclusion of the contract, in addition to contributions, 100% of the earned income will be returned to him. Before retiring, the client of the NPF has the right to withdraw the entire amount accumulated in his account.
According to the legislation, the fund is obliged to return 100% of the invested funds and the received investment income to the relatives of the owner of the individual pension plan, in contrast to the same insurance pension, which heirs do not have rights to in case of death of the pensioner. Also, the balance of the funded pension, which is assigned as part of compulsory pension insurance, is not inherited if the pensioner has issued and received at least one pension. Another situation, if, for example, the owner of an individual pension plan divorced his spouse. In this case, when dividing the property, he will not be able to claim your retirement money. According to the law, the accumulated amounts and investment income are not part of the jointly acquired property. Unlike the same bank deposits or money on a brokerage account, some of which the former spouse may demand through the court.
I can’t work anymore, I’m retired
And so, you left work yourself, due to your state of health or general tiredness, or you were politely asked to do this in order to give way to young, more promising employees. In general, you received your first pension in your life, and gasped: “How can you live on this amount ?!”
Do you know which answer is best for this question? In my opinion, the only answer is: "Modestly and economically."
Well, we’ll figure out how to live with it.
To begin with, we will calculate what your pension will be spent on or will go on. I hope that you repaid all the loans that you had during your work, otherwise I recommend that you look for a job and work until you close all your debts. Otherwise, your already small pension will be further reduced by the amount of payments to the bank or microfinance organization.
1. Utility Payments
These are constant and obligatory payments, which cannot be avoided. You need to pay for the apartment, otherwise in old age, in the presence of huge debts for a communal apartment, you can not only be left without electricity or gas (they can simply be turned off for non-payment), but even lose your home.
For example, by a court decision, a pensioner - a debtor can be evicted from an apartment, an apartment sold for debts, and a pensioner sent to a nursing home. God forbid, of course.
I'm not trying to intimidate you, I just pay attention to the fact that you have to pay for the apartment. It is better to limit yourself to any other needs, but pay for the apartment.
In the end, if according to the results of your calculations you understand that you do not have enough money for basic needs, including not enough money for utility bills, it is better, while you are still full of energy, to move to another, with a smaller area and, accordingly, with a smaller amount of utility bills apartment.
Or, if you are the owner of a multi-room apartment, let the guests into one of the rooms. The money received from this will greatly simplify the current financial situation.
2. The cost of food
While you were working and receiving a salary higher than your current pension, you could not only afford expensive delicacies, but also purchase ready-made products, for example, various kinds of ready-made salads, semi-finished products, etc.
After retirement, you have a lot of free time, so this time you can well spend on cooking. Believe me, self-cooking at home, rather than buying convenience foods in the store, significantly saves the already meager pension budget.
For more information on how to save on food, I recommend reading the link: How to save on food.
3. Costs of clothing
It is necessary to allocate a certain amount of money for clothes. This is especially true of underwear and constantly worn items. But, by the way, the clothes that you have in your closet, especially outerwear, will last you at least five years, and with careful wear and for a longer period.
Yes, I want to draw your attention to the following feature that can affect any person. Upon retirement, the intensity of life slows down, we move much less than during the work period, especially if you do not have garden plots where you spend your energy.
And the more measured our life becomes, the greater the likelihood of gaining excess weight. That is, when we retire, we start to get fat! And this applies to most retirees.
In addition to poor health, weight gain will also necessitate a wardrobe upgrade. And this means that the cost of clothing will increase.
Is your pension enough for these expenses? I don’t think so. Therefore, when retiring, be sure to monitor your weight. And do not allow weight gain.
4. Other household expenses
In addition to nutrition, everyone needs normal living conditions. And this also includes cash costs, including the elementary purchase of toilet paper, shampoos, soap, laundry detergent, cleaning products for apartments, towels, bedding, etc. etc.
Available stocks, of course, can last a long time. But you won’t accumulate for the rest of your life, therefore we also lay these expenses.
5. The cost of drugs
Unfortunately, with age we do not become more cheerful and healthier, and by retiring most of us are the “happy owner” of a bouquet of illnesses. This means that the cost of the medicine will accompany us for the rest of our lives. No matter how cynical it sounds.
Therefore, as in previous cases, in our pension family budget we lay down the costs of medicines.
It is possible that you have more basic items of expenditure than I have listed. If so, add your expenses, they also need to be taken into account when planning and distributing the pension. For example, it can be help to children, or, for example, you pay on a loan, or repay debts. There may be many options.
In my opinion, the best thing to do is:
1. We know the approximate amount of utility bills. Of course, it differs depending on the availability of heating and the amount of water or electricity consumed. But in general, it is about the same amount.
Accordingly, the first thing we do when we receive a pension is to save the necessary amount for upcoming utility bills. If you receive cash, it’s easiest to make a few envelopes. Sign them, and lay out the money on the appropriate envelopes.
So, the first envelope will be called “utility bills” - we put the necessary amount for utility bills into it.
2. The second envelope will be “Food” or “Products”. We put half of the remaining amount of money in it.
That is, after they received the pension, they allocated the amount for utility bills, the remaining part was divided equally, well, or approximately equally.
We save money in an envelope for products.
3. The remaining part of the money is divided into four equal parts. And lay them out on the following envelopes:
4) create an envelope for stock
For stock, that is, to form a small “airbag”, let's call it “Stock”
Ideally, if you put aside this envelope, you will be at least 10% of the pension you received. But, unfortunately, this is not always possible.
Why do we need this envelope? The answer is simple: in case of unforeseen circumstances. For example, a pipe burst in the apartment, and money is needed to repair it. Here you take them from this envelope. Or, you were invited to visit for a birthday, you need to buy a gift. You can also use this money on it.
Or, for example, the medicine has risen in price, and the money set aside for the medicine was not enough for you. This is where the envelope with the Stock will help ...
If you receive a pension on a card (to a bank account), you can make it even easier
Open a savings account in the bank where you receive your pension, which allows you to deposit and withdraw money at any time. This will allow you not only to save your money, and not spend it once again, but also to receive small additional interest for their presence in the bank. This, of course, is a small, but still additional income.
In this case, you will withdraw money from the account only when you need it. Better yet, if you learn to use a bank card, use mobile payments, with which you can transfer money from one account to another without going to a bank, and completely abandon cash.
There is nothing complicated about it, and any bank will gladly tell you and show you how it works.
After all, you are a modern senior citizen ?!
A small conclusion to the article
It is quite possible to live on retirement without even working. You have to study, not only take your expenses into account, but also save.
And the correct and, most importantly, practical distribution of your pension for a month, compliance with the rules of such distribution, will allow you to have a pretty decent existence, and not sit in the last week before your next pension with a few pennies in your hands.
1. How to calculate the amount of pension capital
There are two approaches to calculating your retirement capital. The first approach is based on the following idea: by the age of retirement a person creates savings, and then lives on interest from his capital.
In retirement time, a person uses only rent, without spending capital itself. When a person’s life path is completed, capital is transferred to children. This approach is good in that it implies unlimited time earnings: live a person for at least two hundred years, he will always have the means to do this.
The second approach is that the person intends to completely spend his pension capital without passing it by inheritance. At the planning stage, the client and I determine at what age and for how long he would like to provide himself with a stream of retirement income, as well as the size of this income.
With this approach, less money is needed than in the first case. And therefore, solving this problem will be easier. However, there is a danger that a person can outlive his money. And this is one of the strongest retirement fears of older people. For in this case, a person will have no means at all to live on.
Let's look at how the task of creating the necessary savings in each of these cases is solved.
1. Live on rent, and transfer capital to children
Imagine the family of Olga and Paul, who are planning their retirement future. They are 35 years old, Pavel earns 200,000 rubles. per month, Olga - 100,000 rubles. per month. Thus, their family income is $ 5,000 at a rate of 60 rubles / dollar.
It is generally accepted that for a comfortable life in retirement the family needs 70% of the income that the family received in active time. Spouses would like to retire at age 60. So, from now on, we need to provide our family with income of $ 3,500 per month at current prices.
However, one must take into account that until the spouses retire for another 25 years, and all this time the purchasing power of money will fall due to inflation. If we assume that the annual inflation in US dollars will be 3% per annum, then in 25 years money will become cheaper by 2.0938 times, and therefore today's amount of 3.500 dollars in 25 years will be equivalent in purchasing power to the amount of 7.328 dollars.
This means that after a quarter of a century, the created pension capital should provide spouses with a monthly rent of $ 7.328. Then we will solve the problem for this family.
What kind of profitability of pension capital will we put in the calculations? Mature people will not risk their capital, so as not to lose it - otherwise they will have nothing to live on. Therefore, the yield will be low; today the risk-free rate of return can be estimated at 2.5% per annum in US dollars.
Under the assumptions made, it is easy to calculate how much pension capital Pavel and Olga need. If the monthly rent is $ 7.328, then in a year the spouses should receive from their capital a rent in the amount of:
7.328 * 12 = $ 87.936
If the return on capital is 2.5% per annum, then in order to receive this rent capital is required in the amount of:
87.936 / 0.025 = $ 3,517,440
Next, the most important question arises - how much money do spouses need to start saving on a monthly basis in order to create the necessary capital for the remaining 25 years before the retirement age?
В сделанных предположениях Павлу и Ольге нужно на протяжении ближайших 25 лет сберегать 4.010 долл. ежемесячно, чтобы создать необходимый капитал – пожалуйста, откройте лист 1 расчетов к статье. Понятно, что супруги не смогут этого сделать, потому что их суммарный семейный доход составляет 5.000 долл. в месяц.
Поэтому мы продолжим искать приемлемое с точки зрения бюджета решение пенсионной задачи для этой семьи. Предположим, супруги готовы рассмотреть сценарий, когда они работают до 65 лет, и хотели бы иметь пенсионный доход, эквивалентный по покупательной способности текущей сумме в 1.500 долл. в месяц.
Then they need to start saving 1.286 dollars a month, and do it over the next 30 years. As a result, they will create a capital of $ 1,748,187, which will provide the spouses with the necessary rent, and then the capital will be transferred to the children - you can see the calculations on sheet 2 of the calculations for the article.
However, it is unlikely that spouses will be able to fulfill this plan, because it requires monthly savings of more than a quarter of family income. This is a very high saving rate; usually a family is advised to save about 10% of current income.
Suppose that Pavel and Olga decided to save a tenth of their income in order to create their retirement capital, i.e. $ 500 monthly for the next 30 years. As a result, a capital of $ 679,699 will be created, which will provide spouses with a life annuity of $ 583 in current prices, then the capital will be transferred to the children - please open sheet 3 of the calculations for the article.
Let me remind you that in all the calculations above it is assumed that Pavel and Olga use only the rent from their capital, but do not spend the capital itself. Let's see what the solution to the problem will be if the spouses are willing to spend their capital in retirement time.
How to calculate future retirement. Step 6
In the column of the table (which you found in step 5), go down and in the penultimate line find the column with the size of the calculated IPC for the last full year of your work.
For the final calculation in the framework of this article, suppose we look at the Personal Account Status of a 35-year-old man who officially receives only a small part of his earnings - 360t.r. in year. In such a person, in this step, we obtain the IPC value for the last year of work - 4.
2. We spend capital in retirement time
Pavel and Olga create their retirement capital, and then convert it into rents. For example, this can be done through the purchase of an annuity - for life, or for a given period. In this case, the spouses exchange their savings for the income stream, which they will receive the agreed time.
Suppose Pavel and Olga plan to retire at 60, and would like to receive income equal to 70% of their current income over the next 20 years. If the annuity fund is charged 3% per annum, then to solve this problem by the 60th anniversary of the spouses it is necessary to create capital in the amount of $ 1.308.319. To create such capital, the spouses need to save monthly $ 1.492 monthly for the next 25 years - please, open sheet 4 of the calculations for the article.
It will be difficult for spouses to implement this plan, since it requires the savings of almost a third of family income. Therefore, let's see what the size of a family’s retirement income can be if spouses are willing to save 10% of their current income, 500 dollars a month - right up to retirement at 65.
With a return of 8% on savings, after 30 years, the spouses will create capital in the amount of $ 679.699, which will provide them with an annual rent of $ 3.770 per month for the next 20 years, which will be equivalent to $ 1.553 per month at current prices - please , open sheet 5 of the calculations for the article.
And this is a completely workable strategy, because the family can very well afford to save a tenth of its income until retirement. And the created pension capital will provide spouses with a rent of 30% of their income in the active period.
How to calculate future retirement. Step 8
go to the website of the pension fund http://www.pfrf.ru, the section “for future pensioners”, the subsection “how the future pension is formed and calculated” and find the formula for calculating the old-age insurance pension there. It is as follows.
SP = IPC * SIPK + FVwhere:
Joint venture- insurance pension
IPC- this is the sum of all pension points accrued on the date of assignment of insurance pension to a citizen
SIPK- the value of the pension point in the year the insurance pension was assigned.
In 2017 = 78.58 rubles. It is annually indexed by the state.
PV- fixed payout.
On February 1, 2017 = 4805.11 rubles. It is annually indexed by the state.
How to calculate future retirement. Step 9
We calculate your sum of all retirement points (IPC) using this formula, making two assumptions. Assumption 1 - imagine that you will work until retirement for the same job as now and every year you will be charged the same amount of the individual retirement coefficient as you see for the last year of your work (figure in step 6). And we make assumption 2 that you will retire at 60.
Calculation for an example. The total amount of pension points (PPI for the formula) will be equal to the figure obtained in step 7 (in our example, 45), plus the figure in step 6 (we have 4), multiplied by the number of years before retirement (we have 60- 35 = 25 years). And we get the IPC for the formula for calculating the future pension in the amount of - 145 (45 + 4 * 25).
How to calculate future retirement. Step 10
To complete the calculation of the future pension, we take the indicator of the value of the pension point, which is relevant in 2017 - 78.58 rubles (SIPK). And a fixed payment (FC), which is relevant as of February 1, 2017 - 4,805.11 rubles.
For our example, the sum of the future pension is 16199.21 rubles (145 * 78.58 + 4805.11).
It is clear that our pension system changes very often, quickly and sometimes dramatically. Of course, this calculation is approximate and does not mean that you will receive exactly this amount. But the order of numbers will be such, especially since the development strategy of the pension system involves following it, at least until 2030.
I also want to draw attention to the fact that the formula for calculating your pension consists of 3 indicators. You can influence only one of them (IPC) and even partially, since this indicator has an upper threshold (in 2017 - 8.26, in 2021 - 10). That is, to calculate your future pension, whether in 2017 you receive 65 thousand rubles per month or 350 thousand rubles per month - there is no difference for the future pension, the size of the IPK for the year will be -8.26 maximum.
And two other indicators that are used in the formula for calculating your financial security in the future (SIPK and PV) do not depend on your activity at work, but are determined and indexed by the state.
In other words, in the game “how to increase state pension” there is no winner of a pensioner. Even workaholics with big white salaries lose. “The size of the future pension with a high salary”
And the solution is simple, read the paragraph of section II of the Development Strategy of the Russian pension system from 12.25.12... achieving an acceptable pension for the middle class through participation in corporate and private pension systems ” and realize that it’s that your retirement financial future depends entirely on your own personal creation individual pension capital. The state pension will provide only a survival rate. Read about how to create retirement capital. “How to increase future retirement?”
Try at least approximately, for yourself - to answer questions related to planning your financial future:
The sooner you think about these issues - the easier it will be for you to solve your retirement task. Since these are difficult questions, most likely at the stage of retirement planning you will need the help of a financial adviser.
A financial planner will prepare the necessary calculations and help you choose the best solution from various scenarios. He will probably also suggest changing the structure of your assets to make existing assets work more efficiently. Finally, an experienced specialist will offer you a number of ideas for increasing or creating assets, which will help you more effectively solve your retirement task.
One thing is clear. The retirement task is complex, because it requires a very large amount of capital to solve it - we saw this with the example of the Pavel and Olga family. They are 35 years old, and saving 10% of their income every month for 30 years - they will be able to replace only 30% of their current income for 20 retirement years.
So start your retirement planning as early as possible. Determine the amount of retirement capital you need, calculate the amount of monthly investments needed to create it, open and maintain a funded plan for investing these amounts. Then you will create the necessary capital for a comfortable life in adulthood.
If you need advice on the topic - please send an application: