Post by habibi on Sept 16, 2023 10:16:21 GMT
Interesting fact! Many opponents of the pension reform innovations took to the streets with rallies and protests.
Which pension option is better to choose?
Every person should know that at the moment in the Russian Federation, any citizen has the right to choose how his future pension will be formed. It could be:
Insurance system. According to this, every working person regularly and for life pays 22% of taxes on their salary. Of these, 16% goes to his individual or personal account, and 6% is a solidarity tariff used by the state for its own Phone Number List purposes (see How much taxes do we actually pay? );
The funded pension system includes the transfer of funds to an individual account and the payment of an insurance premium. Citizens born in 1967 and those younger received the right to choose a pension in 2014. How to manage your 16% monthly deductions - put everything aside for the insurance balance or transfer part of it to a savings account.
Each option is attractive in its own way, so the future retiree has the right to choose what suits him best.
The difference between insurance payments and savings benefits is that in them the funds are stored in different accounts and used in different ways. In the first (insurance payments) case, the money serves the state; in the second, it can be used in entrepreneurial activity or some kind of business.
If a person does not want to expose his contributions to a secure old age to any risk and strives to act according to a standard scheme that has been tested for decades, then the insurance option will be optimal for him. It implies that all 16% that the employer regularly pays from the salaries of its employees will be retained by the country's treasury until the moment when the citizen reaches the established age and becomes eligible to receive it.
Which pension option is better to choose?
Every person should know that at the moment in the Russian Federation, any citizen has the right to choose how his future pension will be formed. It could be:
Insurance system. According to this, every working person regularly and for life pays 22% of taxes on their salary. Of these, 16% goes to his individual or personal account, and 6% is a solidarity tariff used by the state for its own Phone Number List purposes (see How much taxes do we actually pay? );
The funded pension system includes the transfer of funds to an individual account and the payment of an insurance premium. Citizens born in 1967 and those younger received the right to choose a pension in 2014. How to manage your 16% monthly deductions - put everything aside for the insurance balance or transfer part of it to a savings account.
Each option is attractive in its own way, so the future retiree has the right to choose what suits him best.
The difference between insurance payments and savings benefits is that in them the funds are stored in different accounts and used in different ways. In the first (insurance payments) case, the money serves the state; in the second, it can be used in entrepreneurial activity or some kind of business.
If a person does not want to expose his contributions to a secure old age to any risk and strives to act according to a standard scheme that has been tested for decades, then the insurance option will be optimal for him. It implies that all 16% that the employer regularly pays from the salaries of its employees will be retained by the country's treasury until the moment when the citizen reaches the established age and becomes eligible to receive it.