Why Is The Pension Small

Why Is The Pension Small
Why Is The Pension Small

Video: Why Is The Pension Small

Video: Why Is The Pension Small
Video: Why You Shouldn't Pay Into Your Pension (UK) 2024, April
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Leaving for a well-deserved rest, people hope to finally take a break from hard working days, do what they love, and live for their own pleasure. But after retirement, it turns out that a person who has given his best years for the good of the state can hardly afford even the most necessary things.

Why is the pension small
Why is the pension small

The meager size of pensions in Russia can be explained by a number of reasons. Pension is a type of social payments to citizens who have reached retirement age. The state pays pensions from the budget, one of the main sources of which is all kinds of tax collections. The total amount of taxes collected directly depends on the number of the working population, part of whose income goes to the budget. In the 90s, due to economic and social upheavals, the birth rate curve went down sharply. This means that the number of economically active population in Russia has decreased, while the number of pensioners continues to grow. And tax collections are simply not enough for a decent increase in pensions, but the size of a pension depends not only on national trends, but also on the occupation of the future pensioner. If a person has worked for a long time in "harmful" industries (these include steel, chemical and similar enterprises), then his pension will be an order of magnitude higher than the average. And if a person, living in a village, performed grain harvesting, then his work can be considered seasonal and will be taken into account when forming a pension not for the whole year, but for the period of direct grain harvesting. Therefore, the pension of representatives of a number of rural professions is minimal. The small pension of the current pensioners may be the result of a lack of seniority. But for the modern younger generation, this factor will not play a big role. Indeed, according to the Federal Law on Labor Pensions, the bulk of this social benefit will be funded. In other words, the size of the future pension will depend on the amount of contributions made by the citizen to the pension fund. Even without that, a small pension seems at all scanty against the background of the prices for medicines that old people need so much. The constant rise in inflation makes the small pension even smaller.

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