For pensions to be higher in 2024, those who will receive a pension next year should first be officially employed and earn a regular salary. Olga Daineko, an expert from the Research Institute of the Ministry of Finance of the Russian Federation and the Myfinance.rf portal, outlined five additional ways to increase the pension in the coming year for socialbites.ca.
As Daineko notes, higher official earnings translate into more pension points. When pensions are issued, they are converted into rubles. As of January 1, 2024, the value of a pension point stood at 133.05 rubles and is indexed each year. A maximum of 10 points can be earned per year of study. To qualify for an old-age insurance pension in 2024, a minimum of 15 years of service and 28.2 points is required. Earning income that is paid officially or in an envelope can prevent point accumulation and, in informal employment, can even jeopardize the record of work experience, Daineko explains.
The second method involves purchasing additional experience and points if the current total is insufficient. This can be done by entering into a voluntary relationship under compulsory pension insurance.
The third method is to retire later.
In this scenario, the pension increases due to a higher premium coefficient used in the calculation. Alternatively, a person may continue working after the pension is allocated; doing so raises the number of points and can lead to a future boost when the pension is adjusted. One year of work for a pensioner can add up to three points. A person should perform a personal calculation and consider health conditions before deciding on a later retirement.
Daineko adds that the fourth and fifth methods involve non-state pensions and long-term savings programs. In the first case, additional pension benefits are formed, while the second scheme helps accumulate extra retirement assets to receive payments in the future.
In 2024, pension indexing is set at 7.5 percent. The increase does not apply to the pensions of working retirees, but may apply after dismissal once payments resume on a monthly basis from the month following dismissal. As of August 1, 2024, the pensions of working retirees will be recalculated according to the rise in retirement points earned during the official employment period in 2023. Pension eligibility for men over 63 and women over 58 remains to retire with an old-age pension in 2024.
Earlier coverage from socialbites.ca discussed how childcare can influence the amount of a pension.