Pension for individual entrepreneurs (individual entrepreneurs) in 2021: accrual, calculation, indexation

Be sure to run the calculation on a retirement calculator.

Every working citizen of Russia has the right to count on a pension by a certain age. Individual entrepreneurs are no exception. However, if the employer makes insurance contributions for a future pension for people working for hire, then the individual entrepreneur is obliged to independently make insurance contributions to the Pension Fund of the Russian Federation. At the same time, many individual entrepreneurs are interested in the question: how and from which deductions their future pension is formed and how it is calculated.

Amount of contributions

But what about individual entrepreneurs who simultaneously act as both an employer and an employee? They also have every right to a pension. Their pension is made up of insurance premiums, which each individual entrepreneur is obliged to pay annually.

The amount of annual payments is fixed. For example, in 2021, individual entrepreneurs need to pay contributions in the amount of 32,385 rubles. Of this amount, a little more than 26 thousand rubles go to pension insurance, and about 6 thousand rubles go to health insurance.

These contributions are mandatory for all individual entrepreneurs. It does not matter whether the businessman is active, whether he makes a profit or incurs losses. Sometimes high fees become a problem for entrepreneurs who receive little income operating in a tiny town. That is why, if an individual entrepreneur does not make a profit and does not see any prospects, he prefers to close quickly.

In addition to the mandatory fixed part of insurance premiums, there is also a variable part. It is already tied to the amount of income of the individual entrepreneur and must be paid only if the individual entrepreneur receives income in the amount of more than 300 thousand rubles during the year. The contribution amount is 1% of the amount that exceeds the established limit.

Example. Let’s imagine that an individual entrepreneur earned 2 million rubles in a year. He will need to pay 32,385 rubles, as well as 1% of 1.7 million (2 million - 0.3 million), that is, 17,000 rubles. In total, the total amount of contributions for the year can approach 50 thousand rubles.

Thus, when comparing individual entrepreneurs and hired employees, it can be noted that the calculation of future pensions for entrepreneurs occurs at the expense of the amount of insurance premiums that they paid during their activities. For “mercenaries”, the size of their pension will depend on the amount of their salary.

Is it possible not to pay Insurance premiums?

As practice shows, if in some year the individual entrepreneur did not pay the pension, then this year will not be included in the total length of service when calculating the age-related pension. But there are still circumstances that guarantee the individual entrepreneur that the years during which contributions were not made will still be counted towards the total length of service.

Let us remind you that in 2021, the mandatory length of service is 9 years , while by 2025 this figure is planned to be raised to 15 years. This means that if a citizen, having reached retirement age, has not worked for a total of 15 years, then he will not be able to claim an insurance pension. He can only be provided with a social pension.

Periods that cancel mandatory insurance premium payments include:

military service upon conscription;
maternity leave for up to 1.5 years (can be issued by either parent);
caring for a disabled child, or a disabled person of group 1, as well as an old person over 80 years old;
lack of conditions for doing business - this option is acceptable if a woman businesswoman moved with her military husband, and there is no real opportunity for this;
moving abroad - the reasons remain the same: following a spouse engaged in diplomacy.

There are, in fact, plenty of reasons. But in real life they are extremely rare, so everyone will have to work hard to accumulate experience.

How to calculate the work experience of an individual entrepreneur?

Hired workers know that the longer the duration of their working activity in the presence of official employment and a white salary, the larger the final amount of their pension will be, which depends on the so-called length of service.

With IP the situation is approximately the same. Only here the entire operating time of the individual entrepreneur is taken into account. All years are taken into account regardless of the presence of actual activity, because individual entrepreneurs, as we noted above, are obliged to pay fixed contributions to the budget under any conditions.

If a citizen worked for a long time as an individual entrepreneur, but then decided to close his own business and become a hired employee in a company, then when calculating the pension, the years of operation of the individual entrepreneur plus the years spent as a hired employee will be taken into account.

Formula for calculating pension

Individual entrepreneurs, in order to understand what size of pension they are entitled to, can look at a special calculation formula. It gives an approximate idea of upcoming payments.

The formula looks like this:

The amount of the insurance pension = The sum of accumulated points over the years of work x The value of the pension point at the time of retirement + Basic payment.

Now let's talk about the values that need to be substituted into this formula.

The basic payment is a certain value that is established by the state and does not depend on the amount of funds transferred to the treasury by the payer over the years of activity. In 2021, the basic payment is 4,982 rubles. The state indexes its size annually depending on the level of inflation.

The cost of a pension point today is 81.49 rubles. The state will also regularly index this indicator so that the size of pension payments always meets the requirements of the time.

And finally, the third parameter of our formula is the sum of accumulated points over the years of work. For each year worked, a citizen will receive a certain number of points, which will then be simply calculated. In 2021, the maximum score for the year is 8.7. Starting in 2021, you can earn up to 10 points every 12 months.

At the same time, a citizen must not just be listed as a worker on paper. Points are accrued only if the employer makes appropriate contributions for his employee. In the case of individual entrepreneurs, we are talking about paying mandatory insurance contributions.

The higher a citizen’s salary and the higher the amount of contributions paid, the more points he will be awarded per year. After working in this mode for many years, you can count on a high pension.

Are there any benefits?

Pensioners are a special category of citizens who have a large amount of social preferences from the state. Therefore, the question of the availability of benefits when opening an individual entrepreneur is quite logical. For pensioners who decide to start their own business, no special preferences are provided. But they can enjoy general benefits, established, among other things, based on the chosen tax regime. The following forms of taxation may be applied:

BASIC . This IP format is used less frequently than others, because it is more complex from the point of view of accounting and reporting.
USN . One of the most popular special modes, popularly called “simplified”. It has an income and income-expenditure model. The amount of tax paid, as the names suggest, is paid based on revenue or profit.
UTII . A special regime that involves paying tax on so-called “imputed” income.
Unified agricultural tax . Applicable to entrepreneurs working in the field of agriculture, it provides some privileges for this business segment.
PSN . It is considered one of the simplest taxation formats and requires the payment of fixed amounts of tax.

All these forms of business require the entrepreneur to pay taxes and insurance premiums, at a minimum, for himself (if there are employees, then for them too). But since 2021, another tax regime has appeared for individual entrepreneurs - the tax on professional activities (NPT). By choosing it, the entrepreneur may not pay insurance premiums (this can be done at will).

For a pensioner who already has a pension, NPA is the most suitable option today. You can do it even simpler - do not open an individual entrepreneur, but simply register as self-employed and pay the minimum tax (4 or 6% depending on who is the second party to the transaction - an individual or a legal entity).

What other factors affect retirement?

If an individual entrepreneur wants to significantly increase the size of his pension, then he needs to delay applying for pension money a little. In other words, a citizen already has the right to receive a pension, but does not apply for it, but continues to work and feed himself without government assistance.

And the longer a citizen survives on self-sufficiency, the larger the pension he will then be assigned. The thing is that for such cases an increase in the parameters of the above formula is provided.

For example, if a citizen decides to wait 5 years after receiving the right to a pension and only then comes to receive it, then during the calculation they will add 36% to the basic payment. The amount of accumulated points increases by 45%.

If a citizen shows restraint and does not apply for pension money for 10 years, then the basic payment in his case will more than double. The amount of accumulated points will be increased by 2.3 times.

Such bonuses significantly increase the final amount of pension payments. They appeared for a reason. The state is interested in ensuring that citizens remain in the labor market as long as possible and do not rush to get a pension. Against the backdrop of a declining working-age population, this problem is becoming truly acute.

Beneficial bonuses can encourage citizens to continue working. Potential retirees will know that if they work a little longer and then come to claim their pension, its amount will be significantly larger.

Approximately how much can an individual entrepreneur receive?

Thanks to the pension calculator, which is located on the PFR website, you can roughly imagine what kind of pension existing entrepreneurs will receive if they continue to operate and regularly make insurance contributions.

For example, let’s imagine that an individual entrepreneur plans to work in the market for about 30 years, while receiving about 1.2 million rubles per year. According to the calculations of the calculator, an individual entrepreneur will be able to receive 12.6 thousand rubles per month in retirement. If you work for, for example, 40 years at the same level of income, you can count on pension payments in the amount of more than 15 thousand rubles.

Now let’s take into account bonuses and imagine that the individual entrepreneur does not immediately take advantage of his right to a pension. After working for 40 years and receiving 1.2 million rubles a year, a citizen decides to delay retirement for another 5 years. His pension instantly increases to 21.6 thousand rubles. If you come for a pension 10 years after the appearance of such a right, then the size of the individual entrepreneur’s pension will be more than 34 thousand rubles. And this is a good level, which is close to the average salary level in Russia.

It should be understood that calculations are made relative to current prices. At the time of retirement, the amount will, of course, be indexed to take into account inflation.

How to increase the coefficient?

Paying attention to the calculation and indexation of pensions for individual entrepreneurs, one can draw an obvious conclusion - even with a multimillion-dollar income, citizens cannot count on a solid pension. Therefore, businessmen do not apply for it until the last minute, until it becomes possible to run their own business due to their age.

Is it possible to somehow increase your potential pension? Yes, there are the following ways:

Voluntary provision. If a citizen takes responsibility for caring for an old person, a child or a disabled person of the first group, then he is awarded 1.8 points per year. This is about 140 additional monthly rubles towards your pension. By the way, the same amount is added for military service.
Birth of children. A year of caring for a second child adds another 3.6 points (~280 additional rubles monthly). For the third and fourth, the coefficient increases to 5.4.
Increased experience. If a man over 65 and a woman after 60 continue to engage in activities, then their coefficients begin to increase. But not by much. If, for example, a man applies to the Pension Fund only at the age of 75, then he will be assigned an increasing coefficient equal to 2.11. The number of points, in turn, will increase by 2.32 times.

Drawing conclusions

So, we can say that every individual entrepreneur, if he is interested in a good pension, should pay attention to several basic factors. Namely:

Total work experience. The more years an individual entrepreneur works, the better, because each additional year, subject to deductions for contributions, brings him additional points.
Amount of income. Although individual entrepreneurs pay fixed contributions, they also have a variable part, which depends on the amount of income. Accordingly, with a large income, there will be more contributions to the state, which means you can count on a good pension.
Late appeal. And finally, you shouldn’t immediately stop business and run for a pension as soon as the opportunity arises. Sometimes it is better to work further, hoping that during this time the amount of payments will increase significantly.

Documents required for calculating pension payments

In the case where an entrepreneur works under a standard employment contract, the process of applying for a pension is carried out in the same way as for a regular employee. First of all, you should collect all the documents necessary for this. Then the application, written in free form, along with the collected documents, is submitted to the Pension Fund at the place of residence of the citizen (individual entrepreneur). If everything is done in accordance with the law, the accrual of payments will begin from the next month. If any required document is missing, the application will be considered later. In this case, the deadline can be shifted by a maximum of three months.

The list of documents required to be submitted to the Pension Fund is as follows:

passport (substituting document);
in the event that the individual entrepreneur was an employee - a work book;
if the individual entrepreneur was hired as an employee, employment contracts;
a certificate from the Pension Fund confirming that the individual entrepreneur has made pension contributions;
certificates confirming the level of income, for example, before February 1, 2002 for 5 years (if there is no fact of employment in 2000-2001, provided that the amount of earnings is less than 2,000 rubles).

Provided that an individual entrepreneur worked according to the “Single Tax on Imputed Income” (UTI) rule, the following documents will be required to apply for a pension:

a certificate confirming its deregistration with the regional branch of the Pension Fund upon termination of any activity;
certificate of registration as a payer of such tax through the Federal Tax Service.

When using the simplified tax system you will need to submit:

a certificate from the Pension Fund to which contributions were made before January 1, 2001;
a certificate from the Federal Tax Service branch, where individual entrepreneurs paid contributions subject to re-enrollment to the Pension Fund if the activity continued after January 1, 2001;
a certificate from the archive, if the labor activity was carried out before January 1, 2001;
archival certificates, if labor activity was carried out before January 1, 1991;
if there was a fact of change of surname, then a certificate confirming this;
if the individual entrepreneur has dependents, documents confirming this;
a certificate confirming that the individual entrepreneur has no debt to the Pension Fund.

As follows from the above, there are quite a lot of documents. But their list in specific cases may be different. For this reason, before starting registration, you should contact the regional office of the Pension Fund for consultation.