Indexation is a procedure for increasing pension payments. It is produced with the aim of maintaining a standard of living, which can change with higher prices.
The law providing for changes in the usual indexation plan was adopted as part of the bill on increasing the age of pension recipients. An additional adjustment was made to the PFR budget, which takes into account the costs incurred in connection with the changes.
Who can expect an increase in pension
The increase in payments is not planned for all recipients of pensions. Citizens will receive an increase if the following conditions are met:
- If they are non-working pensioners.
- Upon receipt of insurance pension payments due to disability, upon reaching age, upon loss of a breadwinner.
The increase is not planned for working pensioners. Indexations for this category have not been carried out since 2016, no changes are expected. The increase to social pensions, which was carried out in April, is associated with a change in the value of the subsistence minimum for recipients of subsidies.
Expected amount of increase
The amount of the addition to the pension payment will depend on how much the person receives on a monthly basis. The amount increases by about 7.05%. Considering that the average pension in Russia is 14,414 rubles, the increase will be about 1,000 rubles.
By 2020, the government intends to increase pensions to a level that will exceed inflation. Preparations for this are being carried out, but in previous years the procedure could not be completed - prices rose faster than social benefits multiplied.
For insurance pensions, indexation is planned by 6, 6%. The growth of prices is predicted in the amount of 3, 8%, that is, they will have to be increased by half. The price of retirement points will increase to 93 rubles.
Increase in payments in percentage
Traditionally, pensions have been raised since April 1. Social payments were indexed in different ways - in 2017 by 1.5%, in 2019 by 2.0%. In 2020, an increase of 7% is planned. The average payout will be 9,900 rubles.
Social benefits, including pensions for non-working pensioners, will be indexed in accordance with the legislation. The unemployed receive all the necessary allowances automatically, for the employed there is no increase.
According to the presidential decree, the procedure for recalculation for pensions with social benefits is changing. Increases for government payments are charged in excess of the subsistence level, social security payments will not change.
What will happen to working pensioners
If retirees decide to continue working, no indexation is made for them. The reasons for this are as follows:
- The well-being of people is enhanced by regular increases in salaries.
- After leaving work, the indexation accumulated for the missed time will be taken into account when calculating the amount of payments.
The only increase in the pension provision that awaits such citizens is a recalculation, which is carried out without applications from August 1 of each year.
The amount of the increase is determined on an individual basis. The premium depends on how much the person received last year. You can make calculations and find out how January 2020 will change the amount of payments yourself using special tables.
When calculating the size of a pension, only state subsidies are taken into account, without additional payments like social supplements to the subsistence level and others. A fixed payment is calculated, which should maintain the welfare of the recipient at the same level.
