For modern people who are worried about their future, namely, a comfortable life after reaching retirement age, at this stage of economic development, the question arises: what management organization should be entrusted with storing and saving up its money? Indeed, now absolutely every citizen is free to independently choose a pension fund, so to speak, the guarantor of his comfortable old age. The choice is not only between state and non-state management organizations, but if the second option is preferred, choose the most optimal NPF for yourself.
In order to make an informed choice of a pension fund and not miscalculate, it is necessary to clearly understand the difference between state and non-state management organizations. Non-state pension funds have appeared relatively recently and offer excellent conditions for storing and accumulating funds for their clients. However, people do not indulge these private pension institutions with their trust.
So how do you make the right choice of a pension fund? All necessary information will be presented below so that each person understands which management organization is closer and more profitable for him.
First of all, it is necessary to understand the difference and the basic principles of work, both state and non-state pension funds.
Features of the state management organization
Unfortunately, with the development of the modern economy, one cannot be sure of anything. Citizens who keep their retirement savings in the PF of the Russian Federation run the risk of remaining in their old age with a meager pension. The fact is that a high level of inflation does not allow getting good interest on savings. All pension savings entrusted to the RF PF are transferred to Vnesheconombank. It is worth noting that this financial institution is not responsible for the safety in case of losses. At the same time, it cannot be said that by giving their money for storage to a private management organization, a client with a 100% guarantee will receive a decent pension. There is no certainty that in many years this or that institution will be able to pay the promised amount to its clients, including a private pension fund. The choice of the state pension fund should not be denied at all. Still, he is called upon to carry out important functions and tasks.
Why were NPFs created?
The purpose of the pension reform, as a result of which private pension companies were vested with the right to store and increase the savings of citizens, is to facilitate the work of the RF PF. They are designed to take on part of the powers and costs of the state in this industry. Such reform tactics made it possible to spend funds more rationally, which led to an increase in the interest rate in comparison with Vnesheconombank.
If everything is transparent and clear with regard to the RF PF, because it is the only representative of its kind, then regarding NPFs, of which there are a great many, a large number of questions and misunderstandings arise. Therefore, the choice of a non-state pension fund is difficult. Before you write an application for the transfer of your savings to the management of one of the NPFs, it is worthwhile to familiarize yourself with the principles of work of private organizations.
Features of the NPF
Positive aspects for which it is worth choosing a private pension fund:
- A citizen may change the amount of future retirement benefits. Each person independently and individually determines for himself the amount of money that is credited to the account of the pension fund and, accordingly, the amount of his future pension benefit will depend on its equivalent. The state pension fund does not provide such a right of choice.
- Getting retirement savings from multiple sources. The fact that a person is a client of a non-governmental pension organization already automatically vests him with the right to receive two pensions - his personal and also from the state. It must be understood that the rights of a citizen are not limited to participation in only one non-governmental pension organization. Their number can be infinite.
- Insurance against negative pension reforms of the state. At this stage of economic development, one cannot be completely calm, and what will happen in ten years is not a mystery at all. Indeed, many countries are implementing pension reforms, which are increasing the retirement age and reducing the amount of pension benefits. Therefore, for any person, the size of his pension and whether he will have it in principle remains unknown. And as a client of a non-state pension fund, you can pretty accurately determine the size of the pension and the start date of its payment.
- Accountability to the state. All non-governmental pension institutions are strictly subordinate to the current legislation of the state, are required to have all the necessary licenses and permits and to submit reports on their activities to special state bodies.
- The benefits of taxation. The preferential system adopted for such non-state pension institutions provides for the provision of benefits to both the clients of the fund and employers who transfer their funds to this fund.
- A fairly high degree of transparency. Each member of the fund has the right to receive an extract from his account at any time. In addition, once a year, the fund independently reports on the state of the account to the depositor.
- Investing only in proven reliable assets. Non-governmental pension organizations invest only in trusted financial institutions, the list of which is approved at the legislative level.
- Proper separation and storage of all monetary assets. The work of non-governmental pension institutions is based in such a way that a specific apparatus of activity is responsible for each individual operation, this greatly simplifies the work of employees of the institution, and also minimizes the risks of depositors regarding the activities of all kinds of fraudsters and charlatans. Moreover, each apparatus separately reports to the state for the work done.
- The hereditary nature of the transfer of cash accumulations. Pension savings of a client of a non-governmental fund are able to be inherited. Therefore, in the event of the death of the owner of the savings, the entire amount can be transferred to his immediate family.
- Free transfer of savings from one non-governmental institution to another or to the state pension fund. In the event of any unforeseen circumstances or personal motives, the depositor has the right to transfer his money to another non-state pension fund or entrust their storage and accumulation to the state on the conditions provided for in the previously concluded agreement.
Pension fund: choice of management company
Undoubtedly, the first thing you need to understand is the difference between public and private institutions. Having studied all the above information, each citizen can make his personal conscious choice of a pension fund, namely which institution to trust in the matter of his safe old age: state or non-state.
Now you should decide on a specific management company. If a citizen decided to entrust the accumulation of his savings to the RF PF, then there can be no difficulties here. He is only one. It is much more difficult to make the right choice of a non-state pension fund. By what date can I write a statement on how to choose the right private management company?
Step-by-step instruction for choosing NPFs
The choice of a private organization should consist of a number of mandatory criteria. Each of the applicants must meet certain requirements.
Organization Year
The older the organization, the more reliable it is. Experts recommend giving preference to applicants established before 1998. This means that they were able to successfully survive the crises of 1998 and 2008.
The composition of the founders
It is best to give preference to organizations whose founders are representatives of the economic sector. These can be large enterprises engaged in mining, representatives of the metallurgical and energy industries. Do not trust the management organizations, headed by a small financial institution, private individual or other small companies.
Profitability
It can be analyzed according to the reports of the management company, which it submits to the Central Bank of the Russian Federation. This is the most important selection criterion on which the size of future savings depends.
Ranking place
They are formed by rating agencies on the basis of data on profitability, strength and other objective criteria. It is worth noting that the degree of popularity of a particular management organization may be different. Therefore, it is worth considering the situation in aggregate and choosing a non-state pension fund based on all available data, and not on a specific criterion.
Fund openness
In accordance with Russian law, all necessary information must be freely available for participants or potential participants of NPFs. The list of such data is established by the Federal Law “On Non-State Pension Funds”.
Investment portfolio
The ability to independently determine its type does not provide every pension fund. The investment portfolio is selected by writing an application. You can do this in three ways: in person (through a representative), send by mail or in your account on an online resource.
Pension fund selection terms
A citizen may change the management company once a year. Many people have a question, when they made their choice of a pension fund - until what date can I apply for a change in the management company? You can write a written appeal until December 31.