The Finance Ministry advised Russians to take care of future pension

The preparation of the reform of the pension system can be finished in the next few months and in 2017, the system can make money in an updated form, says the head of the Ministry of Finance of Russia Anton Siluanov. “Proposals are now being prepared, we will discuss them in detail in the government… this year we will thoroughly prepare all necessary solutions. I hope that it will be either in the second half of 2017 or 2018,” said the Minister in interview to TV channel “Russia 24”.

Siluanov explained that we are talking about a “new vision of the funded component of the pension system and his Agency plans to introduce a retirement mechanism “a number of innovations”, which are already used in other countries. Speech, in particular, goes about possibility of transfer of pension savings inherited, as well as the use of funds of the so-called “pension capital” to pay for medical bills, and possibly Finance other urgent needs.

“We say that working people themselves must also care about his future. The current level of pension provision allows us to have an average pension of about 12 to 13 thousand rubles. per month. This, of course, a small amount, is that even in conditions of deficiency of the Pension Fund can afford in terms of those insurance premiums that the employer pays for their employees. The employee must understand that if he will not participate in the formation of pension savings, the level of the pension will be what it is today” — said Siluanov. He pointed out, to recreate this system, every citizen must shape himself such accumulation and have a clear understanding of how much money he has accumulated.

The Minister assured that the pension account, which is expected to open in commercial banks will become “a completely reliable means” of accumulation, as they will be guaranteed the same tools that work today for Bank accounts”.

“The interest on this account will accrue, the yield will be formed and in the conditions of state guarantees on such accounts is a very good investment to secure their financial opportunities after retirement,” Siluanov said, calling on Russians to make other arrangements for the future.

Answering the question, are the Ministry of Finance the loss of trust of Russians, tired about the endless reform of the pension system, the Minister assured that funds invested by the people in the pension savings will remain with the investors.

“If a person will be able to create their own pension savings, the system will not change and those savings, which will be listed on this account, they will remain for that person and will be used in retirement. To offer normal used worldwide tool of formation of pension savings, it is absolutely fair in the current environment [option]”, — stressed the Minister.

According to Siluanov, the restart of a funded system would help to ensure the Russians a decent retirement and to create the necessary economies “more long resources.

In autumn 2013 the Russian government decided to transfer all contributions to the funded part of pensions for 2014 in the insurance part of the pension system, i.e. to allow for payments to current pensioners. The contributions for the second half of 2013 it froze. As a result, the budget saved about 243 billion rubles, which were partly spent on support of the Crimea.

Later the freeze has been extended for 2015 and then for 2016. In December 2015 the Prime Minister of Russia Dmitry Medvedev promised that the interest of Russians from freezing will not be affected, while the state will receive approximately 345 billion rubles, which the authorities “will be able to use for resolving current urgent tasks, including, maybe, and crisis”.