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“Retirement age is finally returning to 55/60”: people can’t believe their luck Posting in CHAT: Russia Contributory pensions in Russia are becoming increasingly popular as the retirement age increases, especially among those who want to ensure a decent standard of living in retirement. Despite changes in the pension system, the funded pension retains its advantages, allowing you to retire earlier than the established age and having an additional source of income. This is possible due to the fact that the funded pension consists of own contributions, which are invested by the fund. To receive a pension early, you need to contact the fund in which the savings are located. Payments continue until the appointment of an insurance pension, which is financed from the state budget. From 2024, new rules will be introduced to inform citizens about the status of their pension savings. Now information on savings will be provided not only by the Social Fund of Russia, but also by non-state pension funds. This will give more Russians the opportunity to learn about their savings and exercise the right to early retirement. Advantages of a funded pension: Early pension: the opportunity to retire 5-10 years earlier than with a standard pension. a steady source of income in retirement, protected from inflation. Inheritance of savings: the possibility of transferring accumulated funds to heirs. Investment income: the amount of payments may vary due to investment risks. The decision to form a funded pension is individual and depends on the retirement age. financial situation, risk appetite and desired standard of living in retirement. Whatever your choice, the possibility of early retirement through savings remains a positive thing to consider when planning for the future. According to the Russian Pension Fund, about 10 million citizens form a funded pension with an average amount of savings. From 80 to 120 thousand rubles. The profitability of a funded pension depends on the fund's investment strategy, which may affect the final amount of payments. It is important to understand that the funded pension does not replace the insurance pension, but complements it. Therefore, it is recommended to consider a funded pension in the context of other sources of income upon retirement, such as contributions to non-state pension funds or self-savings. As a result, a funded pension can become an effective tool for ensuring a decent life in retirement and financial independence in old age. Growing awareness of the benefits of funded pensions and smart financial planning can lead to a better life in retirement. Source link Source link