What is the freezing of pension savings, how did you make such a decision, and what will it lead to

Alas, now the Russian Federation is not experiencing the best moment of its existence. This affects a number of government decisions. Here, for example, the freezing of pension savings continues for a long time, and, apparently, it will be active for quite some time. What it is? How will a pensioner freeze pension savings now and in the future? And how can this affect us?

What are funded pensions

Before considering what the freezing of pension savings is, it is necessary to determine the terminology. In fact, this is real money that a particular person can dispose of. The size of the future pension directly depends on their amount placed on the accumulative account of each individual. Given that insurance was equated with points and now depends directly on the size of the pension fund budget, we can expect that together they will be able to create an adequate pillow of financial security when they reach retirement age. In addition, such an option, which is legislatively drawn up, allows you to know the approximate level of payments for the future. If everything is transferred to an insurance pension, it will be literally impossible to calculate how much payments will be made in the long run.

What is the freezing of pension savings in practice

This means that the money that would have to go to the funded part will go to cover the expenses of the budget of the Russian Federation and its constituent entities. The law on the freezing of pension savings was first adopted in the fall of 2014. As you can see, the less money gets into the account of each individual person, the less he will receive them later. But about the minuses (and, no matter how strange it may seem, about the relative advantages of such a solution) will be discussed later. Now let's talk about what was taken as the basis of this decision.

What served as the basis for this decision and what will be the effect

As you know, the Russian Federation has been under sanctions for several years. The budget has significant problems, and at some expense they need to be addressed. In response to the challenge, they took and took away the funded part of the pensions. What can be expected from such a decision? At the very least, the economy will not be able to get about 800 billion rubles. If the accumulative money does not come to the market, then the imposed sanctions will hit the state with considerable force. Otherwise, they will be able to act as a shock absorber of the situation.

If you create a holistic picture, then you need to consider everything from 2002. After all, it was precisely when the possibility of an integrated approach was created that many people chose a funded pension fund, as well as various private management companies (which, however, did not receive significant distribution). As a result of government actions, a credit of trust is now exhausted, which makes communication from a position of cooperation problematic. In fact, earlier citizens, having invested money in the funded part of the pension, made it clear that they believe that their funds will benefit, will be useful, and thanks to effective management they will be able to get more maintenance in old age. Now such confidence is disappearing. Now we know what freezing of pension savings is, and what if we consider everything from the “unprofitable” point of view, and what can be said about such a decision of the authorities?

pros

They are more enjoyable, because everyone likes to talk about good things. Summarizing, it should be reported that social infrastructure objects (such as kindergartens and schools) will be built, social benefits will be paid, and a number of other and useful public actions will be carried out. This step will avoid delayed payments to state employees. Police, firefighters, doctors, teachers will receive wages and perform their functions.

Minuses

It is true that all this will be carried out not at the expense of money that came from the state or local budget, but from the funded part of the pension savings of all working people. Of course, this practice was carried out earlier in many countries and quite successfully, but, as a rule, these are isolated cases that went to support the real sector of the economy. That is, for the economy, this action is not very useful. The funds previously transferred to the accumulative pension fund were previously invested in the stock market. But when foreign markets closed, a significant outflow of capital began to occur. How does this affect the stability of the situation?

Let's look at an example: now private and state-owned banks can borrow less money in the stock markets. Accordingly, they will be more picky about individuals and legal entities, there will be more refusals to buy things (creating an incentive to buy something) and to implement new projects. And those who give out, will do it at a greater rate than now. And to buy a refrigerator or TV on credit now will cost much more than three years ago. But in the modern economic system it is difficult to do without loans. They serve as a kind of “steroid” for the economic sector - it is growing, and with it the wages and welfare of the state’s population.

Problems in this case

What are the possible consequences of freezing pension savings? The problem of lending was considered, but it is not the only one. Another, perhaps even greater, is that due to the ineffective use of money, the level of citizens' trust in the government is falling, and let's look at the example of NPFs.

Freezing pension savings, and, accordingly, not receiving money, will seriously affect the number of citizens who want to use its services. So, in 2014 it was announced that the freezing of pension savings will be only now. It has been a long time, and we can observe that this promise remains with them. The authorities misled and changed their mind. Also, the introduction of new provisions with a low level of trust allows us to speak of even greater suspicion on the part of civil society. So, earlier, persons who were younger than 1967, were offered to save money in a funded pension. Their number depended on age, length of service, and other various factors. Now they have been replaced by points. Earlier, a citizen could know that he has an insurance part of 10 thousand, and the accumulative part - 5. There is complication, and due to the fact that it was not properly explained, it again raises a suspicion of what and how.

Let’s at least deal with the new system in the framework of this article. The fact is that one point provides a certain amount of money. That's just the legislation of the Russian Federation causes considerable concern. So, let's say one point now is a hundred rubles. But tomorrow - only ten. The use of points is quite popular in the world - for example, Switzerland, France and a number of other states use similar ones. It’s just that our sovereign changes in this way are not very inspiring for an optimistic future. But there is a fact - the freezing of pension savings. Reviews of ordinary citizens can tell us about this decision :

1. Dissatisfaction with the general state of affairs.
2. Lack of support for decisions that negatively affect the pension and its size.

Conclusion

We think there are no more questions about what freezing pension savings is. Well, now we can assume that the goal is achieved. Readers know what pension reform is.