The insurance and funded part of the pension are the main components of the state security

The modern pension system of Russia includes a certain type of savings, which are formed from the employer's transfers. Let's try to figure out what the insurance and funded part of the pension consists of.

What is included in the future security

The insurance and funded part of the pension is 22% of the wages of each employee. Funds go to the formation of a future pension, which includes insurance and funded components. Insurance makes 16%, and accumulative - 6%. The state spends the insurance part on payment to current pensioners and takes into account in the form of liabilities pensions for payment to future pensioners. The insurance and funded part of the pension consists of all income transferred by the employer to a special account of the employee. The account number is indicated on the SNILS card. The state allows to increase accumulative savings by selecting management funds and companies.

The main components of pensions

Let's consider what are the differences between the insurance and funded pensions.

Insurance:

• It is 16%.
• It depends on the full length of service and salary level.
• It is calculated by the Pension Fund according to a special formula (private from the division of pension capital at the time of retirement and the number of months of future transfers, and the minimum established by the state - the base part) is added to the result.
• Man can not dispose of money.
• Payment is made monthly after reaching the legal age (55 years - for the female part of the population and 60 years - for the male).

Cumulative:

• Is 6%.
• Depends on the level of wages and the term of monthly contributions.
• A person can manage it - transfer to any non-governmental pension fund or entrust the management company, thereby further increasing the size of their pension.

How to preserve and increase the accumulation

The insurance and funded part of the pension are formed throughout the entire length of the employment period. Insurance savings are guaranteed payments of money by the state depending on the length of service, and the composition of the funded component includes 6% of the employer's transfers to the pension fund from January 1, 2012.

Now, any working person can choose the following options for managing the cumulative security:

• Leave it in the State Pension Fund, entrusting the preservation of the management company.
• To give preference to any responsible company where the funded part of the security will be kept in the state fund, and the non-government pension fund having a contract with the state fund will dispose of the funds.
• The management of savings savings is carried out under the complete control of non-state pension funds, into which funds are transferred.

The accumulative and insurance part of the pension are mandatory components of the future pension. Any person can take care of mandatory security by choosing a suitable option for managing accumulated reserves.