How much pension will grow in 2020

In the next five years, the pension of Russian citizens will increase significantly. How much the allowance will increase in the coming 2020 excites not only current pensioners, but also people of pre-retirement age. However, the indexation schedule has been approved up to 2024 and the government has no reason to deviate from the intended course. Each pensioner can calculate the size of future payments independently.

Important changes

In autumn 2018, President of the Russian Federation Vladimir Putin signed a law on raising the retirement age. The document includes several more important changes to the Russian pension legislation. The main ones entered into force as early as 2019. The age threshold for retirement has increased significantly for both men and women. Now, citizens of all professions, with the exception of the preferential list, will be forced to work 5 years longer. Men will be able to finish their labor activity at 65, and women at 60. The increase will be gradual, with a transition period to 2024.

In addition, the document stipulates the prerequisites for obtaining the right to accrual of benefits. From January 2019, retirement is possible subject to three points:

  • reaching retirement age;
  • Minimum length of service (length of service);
  • the presence of a sufficient number of retirement points.

For citizens associated with work in difficult and hazardous working conditions, the old age limits have been preserved. And for pre-pensioners, the government retained all the benefits and measures of social support that rely on reaching retirement age (travel benefits, medications, tax exemptions, etc.).

In addition to increasing the age for going on holiday, Law No. 350-FZ of 10/08/2018 provides for an increase in pension payments according to a special schedule. Until 2024, they will be indexed annually by an amount greater than the inflation rate according to preliminary forecasts. The percentage expression of additives is reflected in the text of the Federal Law for the period from 2019 to 2024. That is, the size of the pension is already known for the next five years. The average increase in payments between 2019 and 2024 will be 1 thousand rubles. in year. Thus, the government plans to bring the average old-age pension to 24 thousand rubles by 2024.

Since 2019, pension supplements for rural residents have resumed. A premium of 25% to a fixed payment is due to citizens with a rural experience of at least 30 years. In addition, the prerequisites for receiving “rural payments” are: living in rural areas and dismissal from the place of work.

To whom and how much will increase the pension

The increase in pension benefits in 2020 will affect only retirees who have ceased their employment. For non-working pensioners, recalculation of payments to a greater extent will occur automatically from January 1. The percentage increase, according to the established schedule, will be 6.6%. That is, the size of the pension coefficient will increase to 93 rubles, from 87.24 rubles. the former. The size of the fixed payment will be 5686.28 rubles. The average pension in Russia in 2020 after an increase will reach 16,284 rubles. The increase for each specific pensioner will be different. Its value depends on the size of current payments in 2019.

For working pensioners, no increase is provided. Recall that the indexation of payments for this category of citizens has been frozen since 2016. So far, the immediate plans of the government have no intentions to eliminate the taboo. For pensioners who continue to work in 2020, an increase in payments will be made by recalculating for work experience. Every year, an increase is calculated automatically from August 1. Upon dismissal from work, the insurance pension will be indexed from the next month after the dismissal. The value of pre-indexation will be equal to the sum of all missed promotions.

How much they will increase payments in 2020 is especially worrying for recipients of minimum pensions. Indexing will affect all types of payments (state, insurance, social). That is, old-age pensioners, and people with disabilities, and recipients on the occasion of the loss of the bread-winner will receive an increase. The amount of pensions will be brought to the level of the subsistence level of a pensioner in a particular region for the period 2020. According to preliminary data, social pensions will be increased by 3.9%. It is this value that was taken into account when forming the budget for 2019-2021.

Military pensioners are also waiting for an increase in pension payments. Their size will increase similarly to an increase in the monetary allowance of the security forces due to an increase in the reduction coefficient introduced in 2012. In 2020, its value will be 75.15%. The size of payments for ex-military on average will increase by 3.8%.

According to scientists, the majority of Russian pensioners still live below the poverty line. In order to afford a more or less decent life, older people are forced to get various jobs. Pension reform aims to improve the living standards of older Russians.

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