Self-employed individuals and individual entrepreneurs (IEs) can receive various types of pensions, stated Alexey Govyrin, a member of the State Duma Committee on Small and Medium Entrepreneurship, in an interview with “RG.”
According to him, Russia has several types of pensions, including social and insurance pensions. To receive an insurance pension, participation in pension insurance is required, as well as achieving a certain length of employment and accumulating pension points. The minimum requirements for retirement are 15 years of service and 30 pension points.
Self-Employed Individuals
Self-employed Russians are not required to pay insurance contributions, meaning there is no mandatory length of service or pension savings for them.
Self-employed individuals cannot receive an age insurance pension without a minimum length of service and corresponding savings and will have to wait for it 5 years longer. However, if they conclude a voluntary insurance agreement and pay contributions to the Social Fund of Russia, they will be able to start accumulating the necessary length of service and pension points.
Individual Entrepreneurs
The status of an IE plays a role in forming the pension length because such individuals pay mandatory pension contributions. However, entrepreneurs need to choose between continuing their business after reaching retirement age and a well-deserved rest.
The amount of insurance contributions paid by an IE affects the number of pension points and the size of the future pension.
Govyrin noted that since last year, IE’s insurance contributions have been transferred as a single payment, which is automatically distributed among various areas in the Social Fund of Russia.
The minimum contribution amount required for counting in the length of service for 2024 is 50,700 rubles, equivalent to 1.036 individual pension capital (IPC). The maximum contribution amount is 406,300 rubles (8.292 IPC).
Deferred Pension Increases
According to the deputy, there is also the possibility of receiving a deferred insurance pension, which is not accrued immediately after reaching retirement age but a year or later.
In such cases, an additional coefficient, depending on the deferral period, is applied to the cost of IPC and the fixed payment.
For example, with a one-year deferral, the enhancing coefficient for a fixed payment is 1.056, and for IPC, it is 1.07. The maximum deferral period is 10 years. The coefficient for a fixed payment is 2.11, and for IPC, it is 2.32.
By deferring, the pension amount can more than double, Govyrin concluded.
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