Save for retirement with an insurance company. Freelancing and retirement

Creating a personal pension is one of the priorities for every person. The pension system in Russia does not provide its citizens with support in old age. Therefore, it is very important to accumulate your pension independently at the stage while you are young and full of strength. The more time you have, the simpler and easier it will be to build your retirement savings. So, how to save for retirement yourself?

There are two ways to secure your pension, each of which includes two stages:

1. Creation pension capital .

2. Receiving regular payments.

At the first stage, you need to choose an instrument that will provide a yield of 5-9% per annum in foreign currency for ten to thirty years. At the second stage, you need an instrument that will ensure receipt of a guaranteed personal monthly annuity - annuity. Let's consider possible tools for creating and receiving pension capital.

1. Creation of pension capital using the unit-linked investment method

Using this method in European countries they save money for themselves. pension since the 1960s. The idea is that within a life insurance policy there are investments to mutual funds automatically without the possibility of speculation: a portfolio of five to eight such funds is opened. The investment period for regular investments is from 15 years, for one-time investments – from five years. This method offers two different investment strategies - progressive monthly contributions (from $300-500 per month) or one-time investments with the ability to invest money annually (from $50 thousand).

The return on investment in US dollars, euros and British pounds averages 6-9% per annum for regular investments and up to 10-12% for one-time investments, which is two to five times higher than the inflation of these currencies. There is no annual guaranteed interest, meaning the amount in the account can either rise or fall. Therefore, to smooth out stock market fluctuations optimal time investment – from five years or more.

The method has been successfully working for more than 50 years, so it provides stability, reliability and a safe environment for increasing your capital. But capital liquidity is limited: in the first 5-15 years, money from savings pension can only be partially used.

This investment method ensures complete confidentiality and legal protection of your capital, including in the event of litigation (the created capital cannot be taken away by a court decision, in case of divorce, etc.). Because legally this is a contract life insurance, your capital is not subject to taxes. The tax return will only need to be prepared after the policy is closed.

The heirs are registered in the contract. In the event of the death of the policy holder, the money is paid to the heirs within one month and is also tax-free. It is impossible to sue or challenge the payment.

The contract can be concluded remotely. Russians have the opportunity to accumulate pension capital using the unit-linked method with insurance companies such as RL360, Hansard, Investors Trust.

Conclusion. The method is ideal for those who value security, reliability, confidentiality for their own investments and think about creating capital in the long term.

2. Creation of pension capital through a life insurance plan

The second option is a universal plan with the ability to save for retirement + life insurance. Universal index insurance plans were developed about 25 years ago and gained enormous popularity in the United States and European countries, and then throughout the world. Why? Because investors have long dreamed of making money on the growth of the stock market and not losing anything when it falls. This dream has become a reality.

Such plans with a guarantee of +1% annually are only available from insurance companies. In such plans, when an investment index, for example, the S&P500, grows, you earn an average of 8-10% per annum, while when the index falls, you receive 1% from the insurance company (this was the case, for example, when the market fell in 2008). The average return over the last 20 years, taking into account growth and decline, is 6-7% per annum. At the same time, you need to understand that this method is not an investment in the pure SP500 index, that is, the return will usually be slightly lower than the pure growth of the index. This is an insurance product.

The plan includes life insurance, an essential element of financial security. Another undeniable advantage of the plan is flexibility. It can be corrected throughout your life.

Liquidity is limited. You can partially use the money (withdraw, take out loans) from the second year of investment, while the full amount of savings usually cannot be withdrawn during the first 15 years.

Foreign insurance plans are available to Russian citizens. There are a number of companies that accept Russians remotely, without leaving the country. Depending on age, investments can start from $2000 per year.

The capital is fully protected, including from all lawsuits. In case of death, money is paid to the heirs within a month.

Conclusion. The method is perfect for those who solve financial issues while multitasking.

3. Annuity

These types of plans are available from companies that specialize in life insurance. An annuity can be created either by a one-time contribution or by transferring capital from an insurance policy to a regular annuity. With a one-time contribution, the minimum period for the formation of an annuity, which is necessary to begin payments, is usually 12 years. You can convert your insurance policy into an annuity after one year or later. To receive payments from the insurance policy, you can apply for a guaranteed monthly annuity starting from the second year. This method is especially suitable for people who need to receive money in any situation in the world from the age of 40-50 and for life.

Foreign pension funds are not available to non-residents, but you can make annuities from foreign insurance companies and receive guaranteed payments.

The annuity is guaranteed to provide an annuity up to age 121. For example, if you turned 60 yesterday and you have $1 million in your annuity, you will receive $4,000 to $4,500 each month until age 121. An annuity cannot be replaced by any other instrument. Only within the framework of this plan you are guaranteed to receive a fixed monthly annuity, regardless of the situation in the world and other circumstances.

Conclusion. An annuity is great for creating a personal pensions those who are going to live happily ever after prefer complete clarity in numbers.

Among my clients there is no clearly traceable dynamics in the use of a specific instrument; for each, we select a method and method that solves individual problems within the framework of the long-term financial plan of a particular client.

Pension- this is age, personal pension is capital, a choice that you are making now. The European pension is available to Russians. And you don’t even need to leave the country for this. Use this opportunity to save money and secure your future yourself.

For the younger generation it is obvious that state pension won't be enough. Even if you receive a high salary or are a civil servant in a high position, the pension will be low in any case. Many representatives of the older generation are convinced that the state should pay them a decent pension, but in practice this, unfortunately, does not work. The conclusion is clear: you need to save it yourself.
You need to proceed from what you want and what lifestyle is comfortable for you, the main thing is not money, but goals and needs. Retirement is not just about “I want to live on $1000 a month.” It is important where you will live: in Moscow, in the Moscow region, in a village or in a house in Cyprus. Where and what do you want to eat: in restaurants or products from your own garden. The point of a personal financial plan is to correlate what you want with what is real.
The standard approach is to save as much as possible by retirement age and then buy a lifetime pension from an insurance company. But I would suggest looking for alternatives where you take a more active role in shaping your pension. Many of them are related to lifestyle changes. For example, if you live in Moscow, you can sell an apartment and buy a house with half the proceeds, and “buy a higher pension” with the other half. You don’t have to sell the apartment, but rent it out. This will be better than living in Moscow on a pension and limiting your spending.
Another alternative is to independently invest money to form a future pension. If a man is now 30 years old, then he has 35 years left before retirement. This is a long horizon, and therefore consultants recommend spending most of the money on buying stocks and investing less in bonds. As you get closer to retirement, buy fewer stocks and more bonds, reducing portfolio risk. But if you pay yourself a pension from your own savings after reaching 65, then your horizon becomes longer - not 35, but rather 50 years. The investment period is extended, so you can afford more risk.
There are no perfect instruments that are good enough to invest all your savings into. Some will choose real estate, while others will choose Russian or foreign stocks and bonds. The main thing is to diversify your investment portfolio.
It's better not to invest in something you don't understand, it's dangerous. For example, people who do not understand anything about cryptocurrencies invest money there and lose it. First, you should study the tools and only then, if you understand and believe in them, invest money there.
Financial intermediaries can help, but not with everything. Many people have the illusion that they can turn to a financial advisor, pension fund or insurance company - and they will solve all their problems. This is wrong. You need to understand both the advantages and disadvantages of the available tools, take into account intermediary fees and possible conflicts of interest.
When planning personal finances, people often forget about their most important asset - family and children. For the sake of money and career, many overwork, and this is to the detriment family relations. Children who do not see their parents for 5–6 days a week are raised by a nanny, kindergarten, school, social networks. If there is no full contact with children, they are unlikely to want to take care of their parents later. Meanwhile, support from children was once considered the main way to provide for oneself in old age.

Long-term investments have a different attitude towards risk and return, so they make sense in an environment of low inflation and confidence in the stability of the financial system. In developed countries, an increase retirement age most often it took place under such conditions. To form pension savings A variety of financial instruments are available - both regular bank deposits and bonds (that is, instruments with fixed income and moderate risks), as well as special pension programs and non-state pension funds.
In Russia, the situation is intermediate: inflation has decreased, but I cannot say that a developed and stable system of financial institutions has already emerged that would provide a large selection of instruments in which one can invest for the long term. For example, in the event of reorganization or revocation of the license of banks, the state has an obligation to depositors within the framework of the deposit insurance system - but this will not protect the amount that a person has saved for old age: in Europe, the guarantee system covers €100,000, in our country - less than €20,000. According Non-state pension funds and investment funds do not have a guarantee system, the same applies to corporate bonds: if something goes wrong, payments will only be made through a bankruptcy mechanism.
This is not to say that the pension offer for the population is ready, and I would not recommend relying entirely on our pension funds in the form in which they exist. Many people support themselves by buying real estate and renting it out - this allows them to create some kind of stable income, plus the liquidity of this real estate remains. And the same short-term deposits.
Corporate pension systems are already emerging. We have a very “nationalized” economy, large corporations occupy a large share, and they often develop such tools. Pension reform is likely to encourage companies to create such systems - this will allow them to attract and retain the best talent. But it will remain a big problem in the small enterprise sector, not to mention informal employment - however, it was there even before the reform.

The strategy depends on when a person plans to retire, what kind of pension he wants and how much risk he is willing to invest. Let's say, if he wants to receive 50,000 per month (that is, 600,000 per year), then by the age when he plans to retire, he must accumulate an amount that would bring 600,000 per year. At the same time, something should be left for reinvestment and growth - at least 5% of the amount to cover inflation.
A portfolio for passive income is usually made up of conservative or moderately conservative instruments, the yield on which is unlikely to exceed 10% per annum, half of which should be used for reinvestment, and the other can be withdrawn for current expenses. If 600,000 is 5% of the investment, then you need to save at least 12 million rubles at current prices. If you save this amount in conservative instruments with returns at the level of inflation, you need to save monthly an amount equal to 12 million divided by the number of months until retirement. For example, a person is 30, he wants to retire at 60, he is not ready to take risks, he wants to receive 50,000 a month - which means he needs to save 12 million/30*12 = 33 thousand rubles a month.
If a person is saving from scratch and his further investments depend entirely on his ability to work, I would advise minimum pension save within the framework of accumulative life insurance until retirement, and everything beyond that in an individual investment account with a strategy that corresponds to its risk.
If you plan to regularly replenish your investments, you need instruments for which this is technically possible: stocks, bonds, funds. If you need to invest a certain amount one-time, then instruments where replenishment is rarely possible are also suitable: structured products, purchase of real estate and business. For small amounts up to 300–500,000 rubles, I would recommend basic instruments: stocks, bonds, funds (primarily ETFs), since instruments such as real estate and business, with such amounts, can make up more than 50% of the portfolio or even lead to loans (mortgage). And for diversification purposes, it is better not to invest more than 15% in one instrument.
If a person is ready for risk, and there are at least 5 years left until retirement, you can place more than 30% of the portfolio in aggressive instruments (stocks, equity funds, commodities, business). If there is no risk appetite or if retirement is less than 4–5 years, then the basis of the portfolio should be the most conservative instruments: investment-grade bonds or bond funds, instruments with 100% capital protection.
You cannot invest all your retirement savings in high-risk instruments (cryptocurrencies, Forex, venture capital). If you want to take risks, you should allocate no more than 5% of your portfolio for this. And you can’t invest in something you don’t understand: you must be able to explain to yourself what the money will be invested in. If you're thinking of investing in a fund for the potential development of bamboo plantations in Antarctica using unique robotic technologies, but you don't have even close knowledge of it and don't understand how it will work, don't invest.
It is worth checking your pension investments at least once a year. If the portfolio is not conservative, but moderate or aggressive, you need to monitor the dynamics once a quarter and, if necessary, make decisions on adjustments.

Convention International organization Labor has established a minimum level of pension relative to wages at 40%. In developed European countries, this figure ranges from 50–70%. In Russia, it is just over 30% - taking into account the fact that the pension consists of two parts: insurance, which is formed from insurance contributions paid by the employer to the Pension Fund, and funded - which has been “frozen” in recent years by decision of the Government.
Suppose that to the above-mentioned 30%, a 30-year-old person receiving a salary of 50 thousand rubles per month would like to add another 20% through self-saving and receive 25,000 rubles as a pension. Due to insurance premiums, 15,000 rubles will be accumulated, the remaining 10,000 must be saved on your own. The accumulation period will be - taking into account the increase in the retirement age - 35 years, the payment period - 20 years. This means that it is necessary to accumulate 20 x 12 months x 10,000 = 2,400,000 rubles in an individual pension account in 420 months. Then the monthly contribution to the pension fund should be about 6,000 rubles. If the pension fund works efficiently and beats inflation, you can count on a larger monthly payment.
You should invest in instruments with maximum profitability and minimum risk. Following this logic, it is not recommended to invest in risky instruments, which primarily include shares - especially of little-known issuers. Venture projects should also be used only in exceptional cases.
Information about the savings account can be requested from the pension fund annually. For more careful control over the status of the account, you should have access to your personal account and monitor online the receipt of contributions to the account, the accrual of income and all other actions that the fund performs.
Changing the fund, if necessary, is recommended at intervals of no more than 5 years. In this case, during the transition, the income that the fund received for the client when investing his pension funds will not be lost.
If we are talking about independently accumulating funds, I would recommend monitoring your account through your personal account from the moment you enter into a pension agreement. The answer to the question about the frequency of transfer of independently accumulated funds in each pension fund is regulated differently and is in Pension rules fund, which the client must familiarize himself with when concluding the contract.

Pension options:

Lifetime pension
Pension for a specified period
Lifetime pension with a guaranteed period of 5, 10, 15 or 20 years
Lifetime pension with transfer to spouse
One-time payment of the accumulated fund

Payments upon death in the accumulation period at the client's choice:

Refund of contributions made
Redemption amount

Additional opportunities in the accumulation period:

Exemption from payment of contributions
Disability Insurance
Accident insurance

Characteristics:

The age of the insured is 18 years or older as of the start date of insurance; from 45 to 70 years on the date of completion of the accumulation / start of the pension period
Accumulation period - at least 5 years
Contributions and insurance amounts can be denominated in rubles, US dollars or euros at the client’s choice
Policies denominated in rubles can be indexed. Voluntary indexation is an increase in the insurance premium by a certain percentage, the purpose of which is to protect the insured amount from inflation

How the program works

“My Pension” guarantees the client payment of a pension after the end of the accumulation period or a lump sum payment of the accumulated fund.

When choosing insurance coverage in the form of a lifetime pension with the option “Guaranteed payment period”, in the event of the death of the insured during the guaranteed payment period, the monthly payment is inherited by the designated beneficiary and is paid to him until the end of the guaranteed period.

If you choose life insurance with spousal transfer, 60% or 80% of your pension benefits will pass to the insured's spouse upon death.

During the insurance period, investment income is accrued on the policy.

During the accumulation period, payment of redemption amounts is provided, taking into account investment. income upon early termination.

If the policy includes additional program “Exemption from payment of insurance contributions”, then if the insured person develops a disability of group I or II, the pension program continues at the expense of the insurance company.

If the policy includes additional program “Insurance from NS”, then in the event of death or disability Groups I-II As a result of the insurance policy, an insurance payment will be made, which does not affect insurance payment according to the main (pension) program.

If the policy includes additional program “Insurance in case of disability”, then in case of disability of I-II group of the insured for any reason, he will be paid a disability annuity in the amount and within the terms established by the policy.

Example

A 40-year-old man discovered the “My Pension” pension insurance program. The duration of the accumulation period is 25 years. Annual fee RUB 54,760. Starting from the age of 65, he is guaranteed a monthly lifetime payment of 20,000 rubles. Size pension payment taking into account annual indexation and accrual of investment income, it can amount to 23,660 rubles. (with an annual investment return of 5%, annual indexation of 7%).

The size of the guaranteed fund at the end of the accumulation period is RUB 2,318,000.

The program includes “Exemption from payment of contributions”. If the client develops a disability of group I-II during the accumulation period, accumulation will continue due to contributions from the insurance company.

Retirement is a time when you want to live well more than ever. You don't always have to rely on the state. The Pension Fund of the Russian Federation several years ago issued a law on compulsory insurance the funded part of the pension. Not all layers of pensioners are covered by this law.

Because then be someone to whom the legislation did not apply. The task is not only to organize the security of your pension savings, but also to increase them. For this purpose, there is voluntary insurance of future payments.

This service can be used by those who are not included in the law on the funded part and who do not trust the state, relying only on themselves.

Content:

The essence of voluntary pension insurance

Today, to make the dreams of pensioners come true, it has been developed a large number of savings insurance programs. The essence of this insurance is similar to all others:

the client enters into an insurance contract;
starts paying dues;
enjoys pension payments.

For reference! Start paying contributions before you are a pensioner. This is a safety net in old age. The insurance period is determined independently: from 5 years until retirement.

Insurers are meeting their clients halfway: some agree with the state pension age, others can extend it at their discretion.

There are two types of contributions: with preliminary accumulation of the amount or with a lump sum compensation. In the latter case, the insured will be able to use his bonuses within a month.

The client will decide which policy to take out.

Insurance can be taken out by anyone who wishes: a son - a working mother, you are on your own. The main thing is that the insured person does not count pennies in old age.

Nuances of voluntary insurance

If, with compulsory insurance, the state actively participates in this issue, establishing its own rules, with voluntary registration, non-state pension funds and insurance companies will take up the matter.

The terms of the contract and the amount of the contribution are also dictated by the insured himself.

In this case, the state steps aside and will have nothing to do with your insurance. Absolutely all insurance organizations and funds with a non-state program are under the strict control of government agencies.

Important! By taking out a voluntary insurance policy, you can be sure that you will live a decent old age. You still need to try harder to live on the funds accrued to the pension fund according to state standards.

How do insurance payments work?

This type of insurance gives confidence in the future. Developed European countries have long made this type of pension savings the main one - a pensioner, without relying on the state, makes his own money. This is the basic principle. That’s why Western pensioners are just starting to live when they retire.

The security accrued by the state will remain with you in any case. In addition, there will be good dividends from insurers.

When concluding an insurance contract, carefully read the terms of compensation:

When you reach retirement age, you will receive a one-time payment from an insurance company or non-state pension fund.
Go into a well-deserved retirement, receive your basic pension, and receive monthly payments from the insurance company.
If the company's rules stipulate the possibility of lifelong maintenance, you can use this service. The insured person is obligated to pay for the rest of his life.
The client himself chooses the period for which all accruals will be paid to him. This varies from 5 to 10 years, sometimes even more.

Attention! In the event of the sudden death of the insured person, the remaining funds will be received by the heirs. They will be paid exactly as much as the deceased managed to accumulate during the period of validity of the contract.

Some brave insurers undertake to make lifetime payments to heirs, even if there is no specifically agreed amount.

For reference! The quality of payments is a constant unit. Neither default, nor crisis, nor force majeure circumstances can affect this. They will pay you everything you are legally entitled to under the contract.

Savings management

Many people, due to their legal ignorance, consider any type of insurance to be a real fraud. This is far from true. Insurance companies give you the opportunity to manage your insured savings the way you want. Here are some of the manipulations available to you:

Save, multiply. Remember that insurers add their percentage of payments to your amounts.
100% guarantee of payments upon the occurrence of an insured event, which is considered retirement.
Additional pension.
Possibility of transferring the funded portion to other insurers or to the accounts of other non-state pension funds.
The client can terminate the contract at any time. To do this, you need to write an application for termination of the contract on a voluntary insurance policy; after 3 months the document ceases to be valid.

Important! Savings are collected from the contributions paid by the insured. Additional amounts are coming from insurers.

Some non-state pension funds offer their investors the calculation of an additional pension based on insurance contributions and taking into account the amount of pension savings, category, and qualifications of the employee.

Just in case

Since the client himself creates an agreement on voluntary pension insurance, he can add a couple of additional functions there that will make life easier, if anything happens.

Insure yourself against accidents.
Be exempt from insurance premiums if you become disabled or have serious health problems.

How much does an insurance policy cost?

There is no single price list. Only you decide how much you want to receive when you retire. The more, the more expensive. The amount of the contribution will be more noticeable when additional functions are activated. For example:

Taking out insurance for pension savings is voluntary, but important. By thinking about retirement when you are young, you ensure yourself a decent old age.

Who doesn’t want to indulge in their favorite hobbies after retirement, spoil their grandchildren, devote all their time to their family, study family tree or travel, well, at least around the glorious cities of your homeland? All citizens of Russia, without exception, who have reached retirement age or the necessary length of service, have the right to apply for and receive a monthly pension accumulated from contributions to compulsory pension insurance.

But it’s no secret that this money is not enough for a carefree existence in old age. The amount of payments from salaries for some is not at all large, some citizens are individual entrepreneurs and pay fixed contributions to the budget annually, while others work unofficially, which means they do not accumulate anything.

You can add a certain amount to your pension by signing a voluntary pension insurance agreement.

What it is

According to pension reform launched in 2002, every citizen of Russia is an insured person. Following the example of the experience of many European countries and America, in our country, as an addition to mandatory, you can use voluntary pension insurance.

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Each employee is given the opportunity to choose at what age to start making these savings, which insurance or financial company to entrust their money at the optimal rate and conditions.

Thus, at retirement age, a citizen is provided with a tangible increase in pension, which, however, he must take care of himself, in advance.

What is it for?

Without getting to the point of this product, we can say: why not just put a certain amount into a savings account every month, and there will be an increase in your pension in old age.

But in life it may happen that this money will either be spent, albeit for a very good reason, or the account will stop being replenished.

Voluntary insurance guarantees:

timely and complete fulfillment of the insured person’s obligations regarding regular contributions;
in the event of an insured event specified in the contract, the insurer is obliged to begin paying an additional pension;
if desired, a citizen can transfer his savings to another responsible company;
Bilateral civil liability is provided for failure to comply with the terms of the agreement.

Who are the subjects?

There are two parties to a voluntary pension insurance agreement:

It is worth noting that you can only invest in one company, and the right to be insured does not depend on the presence of Russian citizenship and the presence of a permanent place of work.

How is it different from mandatory

Criteria for differences	Voluntary pension	Mandatory pension
Guarantees	Validity of the agreement concluded with the fund	Responsibility lies with the state
Conclusion of an agreement	Both non-working citizens and those with an official place of work can participate at will.	Provided that the person is officially employed, participation in the OPS program is mandatory
Parties to the agreement	employer or individual acting as a depositor; recipient of a future pension (in whose name the account is opened); insurance company or non-state pension fund.	future retiree; employer.
Receipt of contributions	From the employer or the individual himself	Contributions are made by the employer
Payment term	Individual (from 5 to 20 years)	Life
Cost of registration of the contract	Minimum down payment	For free
Future pension size	depends on the duration of the agreement; amount and frequency of contributions; choosing a company and savings scheme.	depends on salary, length of service and accumulated points.
Additional pension insurance options	You can withdraw money before you actually retire, or bequeath the accumulated funds	It is possible to terminate the OPS agreement and re-enter it with the NPF

Voluntary pension insurance agreement

To conclude this agreement, you should choose the most reliable company licensed by the Ministry of Finance. It is also important to consider the following criteria:

How long has the NPF been on the market?
Feedback from investors.
Opinion of experts and financial analysts.
Profitability.
Number of insured persons.

To conclude an agreement, you can send an application through the company’s website or come in person to the NPF office. To draw up an agreement you need to have:

passport and TIN;
the amount to pay the down payment, which should be clarified in advance.

On the day of making the first payment, the obligations and rights of the parties specified in the agreement will come into force. In this case, the insured person has the right to change the pension savings scheme at any time.

This document is created only in written form and contains:

information about the parties;
subject of the contract;
information about third parties acquiring benefits;
contract number;
name of the pension insurance scheme and special data;
subjective complex of parties;
information on the procedure for paying insurance premiums;
information about the responsibilities of the parties to the agreement;
contract time;
conditions for termination of the agreement;
procedure for resolving controversial issues;
various details and passport data of a citizen of the Russian Federation.

Its termination

The voluntary insurance contract will be terminated not only at the request of the insured person, but also in the following cases:

In connection with the death of a person insured by the organization.
If the insurer has fully fulfilled its obligations.
According to the court, in case of failure to comply with the terms of the agreement.
In case of liquidation of a legal entity - investor.
Upon the occurrence of force majeure specified in the contract.
If the customer does not make regular insurance payments.

Payment of fees

The procedure for regularly depositing funds into the account can be free, that is, you can deposit both the minimum amount and the desired amount.

If the contract specifies the amount of the future pension, the bank provides a payment schedule. To ensure timely fulfillment of obligations at the bank, you can activate an automatic transfer of funds.

In addition, the paid premiums will generate profit if the citizen has chosen an investment form of insurance. Then, upon reaching retirement age, in addition to the insured amount, the client will also receive interest.

The cumulative form involves the formation of the total amount of payments from the regular contributions paid.

Deduction

According to subparagraphs 4 and 5 of paragraph 1 of Article 219 of the Tax Code of the Russian Federation, persons who independently participate in the formation of their pension savings through an insurance company or non-state pension fund have the right to a pension deduction.

It is provided under agreements concluded in favor of:

spouse (widower), spouse (widow);
parents (adoptive parents);
disabled children;
the taxpayer himself.

The deduction amount cannot exceed RUB 120,000.

In order for an individual to receive a deduction from an employer, he must submit the following documents:

statement;
voluntary pension insurance agreement;
documents that confirm the applicant’s relationship with the persons for whom insurance premiums are paid.
a copy of the license of a non-state pension fund or insurance company (certified by the seal and signature of the manager).

To receive a deduction from the Federal Tax Service, you will additionally need a declaration in form 3-NDFL, an extract from a pension account and a bank statement.

Features for individual entrepreneurs

Receiving social deductions for individual entrepreneurs depends on the chosen taxation system. Of the five types, only OSNO (general taxation system) gives individual entrepreneurs such a right.

For example, an individual entrepreneur using the simplified tax system of 6% already has the right to deduct the amount of fixed insurance premiums from taxes or return them after a desk audit. This difference is due to the fact that only OSNO provides for the payment of personal income tax at a rate of 13% on income.

Advantages and disadvantages

The main advantage of voluntary pension insurance is, of course, the ability to bequeath accumulated funds. While savings under compulsory pension insurance remain in the state budget.

Besides:

The NPF invests the funds of the insured person, that is, it generates income;
deposits are insured in case of liquidation of an insurance or financial company;
You can transfer funds from one NPF to another.

In addition to its undeniable advantages, DPS also has a number of disadvantages. Every citizen has the right to weigh the pros and cons and decide for himself whether to trust his funds to a non-state pension fund or an insurance company.

The disadvantages of NPS are:

opportunity to run into scammers. And therefore, you should only contact those companies that have proven themselves positively and are well known to everyone;
after the bankruptcy of a private structure, the state can pay the amount of savings, subject to certain restrictions;
the amount of the pension that is paid on the basis of an agreement concluded by the employer in the name of its employee is subject to taxation;
Another transformation is expected in 2019 pension system, after which many non-state funds will cease their activities.

The described DPS program allows the population to increase their pension in old age by wisely investing money over several years.

Every retired person has the right to travel, do what has been put off from year to year, spoil his grandchildren, eat well, and simply feel that his long-term work has been adequately rewarded.