Many people want to continue working as they reach retirement age. You can't live on one pension, and you want to help children too … Some pensioners simply do not want to stay at home, because work is the key to their active life. Meanwhile, not all employers are "eager" to keep people of retirement age at the enterprise. Should newly minted retirees be afraid of dismissal and do they risk losing their pension by staying at work?
To quit or not?
Rumor has it that retired older people may lose their already accumulated retirement points if they do not quit their jobs by November of this year. This is just a myth, not supported by any regulatory legal acts. According to the current legislation, since 2016, working pensioners lose only the right to indexation of pension payments (which will resume as soon as the pensioner decides to quit his job). That is, the employee will continue to receive both wages and pensions, but the indexation of the latter will be temporarily "frozen" for the period of the pensioner's labor activity and will resume the next day following the date of his dismissal.
Is it profitable for a pensioner to continue working?
Working pensioners, unlike those who have gone on a well-deserved rest, do not increase their pensions by the indexation coefficient (which is approved annually by the Government). This coefficient does not apply to either the insurance part of the pension or to the fixed payments. Work after reaching retirement age does not affect the number of retirement points already accumulated.
As soon as an elderly person decides to leave work and writes a letter of resignation, all missed payments will be restored to him.
Based on these facts, each pensioner must decide for himself whether it is worth staying at work and how profitable it is. If he has a decent salary, then the temporary absence of indexation and other increases in his pension will not harm his budget. After all, the total income from pensions and wages will definitely be higher than only one pension with allowances. Then the answer to the question "Should a working pensioner quit?" will be unambiguous - no.
Can an employer fire an employee due to the onset of retirement age?
Employers who list retirement age as a reason for leaving an employee should take a good look at the laws on the topic. The legislation strictly prohibits such discrimination and gives retirees the right to continue working. The labor inspectorate will intervene and restore justice if the employer tries to fire a newly minted pensioner based on the age limit.
