Citizens of Russia will be able to withdraw the accumulated money from the pension fund
According to the pension reform, Russian citizens will be able to take back the accumulated money. This was reported by Forbes referring to Sergey Shvetsov, deputy chairman of the Central Bank. He also said that citizens will have to pay income tax on accumulated funds, at the moment it is 13%.
People are given two options: to receive payments once a month or to withdraw the entire amount. In the case of monthly payments, they will receive a pension for 15-20 years, but every two years the pension fund will revise the terms and extend them. In fact, this is still the same classic pension option. In case of death of a citizen, the rest of the amount will go to his relatives. If a relative is already receiving a pension, the inherited funds will be added to it. If not, he will receive the remaining money in one payout. The payment of income tax in this situation has not yet been specified.
Previously, it was possible to withdraw accumulated funds within one time only in two situations: six months after the first paydown, when a person can study the system and understand whether it is suitable for him, as well as in the event of a difficult life situation. The state planned to exempt citizens from taxes on personal income in the event of paying to the fund 6% of wages. It was planned for employers to introduce compensation in the form of income tax benefits if they participate in the financing of pension to employees.
An updated formula for pension payments was presented on October 29. It is planned to make it a voluntary way of saving for senility. The introduction of the mechanism is scheduled for 2021. While the project is in progress, the creators plan to introduce the following points: a citizen can set the amount of payments either in percent or in the certain sum of money. Also, a citizen can choose from what time payments will begin. There are two options: after 30 years from the first paydown or upon reaching retirement age. Funds will be protected by the Deposit Insurance Agency.
If citizens already pay contributions to the pension fund, they can transfer funds to a new one.