The size of the funded part of the labor pension depends on which financial institution it is formed and invested in. You have several options on how to dispose of the funded part of your pension.
Instructions
Step 1
Option 1. Leave the funded part of the pension where it is located by default - in the Pension Fund of the Russian Federation. At the same time, your money will be managed by a state management company. Your funded pension remains in the Pension Fund until you decide otherwise.
Step 2
Option 2. Transfer the funded part of the pension to a private management company (MC). Under the law, the state management company can only invest in government securities, the yield on which is usually below the inflation rate. What does this mean in practice? That your money will be worthless before you retire. The advantage of private management companies is that they have a wider range of opportunities. Disadvantages of this option:
- private management companies work with money impersonally; in other words, they do not keep personal records of clients' savings, all personal information about the client is stored in the Pension Fund of Russia;
- you also fully assume all possible risks that are associated with the transfer of your funds to one company.
Step 3
Option 3. Entrust the funded part of the pension to a non-state pension fund (NPF), the profitability of which is higher than the inflation rate. The advantages of this method:
- you can not only protect the funded part of your future pension from inflation, but also increase your funds, thereby significantly increasing the size of your pension.
- a non-state pension fund has ample investment opportunities;
- NPF can also work with several management companies at once, thus distributing and reducing investment risks;
- you get the opportunity to appoint a legal successor to whom, in the event of your death, the funds of your funded part of your pension will be transferred.
