Pension of an individual entrepreneur: features of calculation

The pension of an individual entrepreneur is calculated differently than in the case of employees. Not only is the principle of accounting for seniority and rules with the size of payment of pension contributions different. And the calculation formula itself is different. However, it is worth telling in detail about all the nuances relating to this topic.

Right to retirement

It has every person who meets the retirement age, has sufficient insurance experience, as well as a pension coefficient of at least 11.4. The latter is worth sorting out. Pension coefficient is the amount of points that are awarded on the date of appointment to a person. Today, each of them costs 78.58 rubles, but this value changes annually. A little later, when it comes to the formula for calculating the amount of the pension, we still have to return to the topic of the coefficient.

So who are the entrepreneurs? They are insured persons for the state. Every year, entrepreneurs contribute a certain amount of money to the FIU. In 2017, it is equal to 27,990 rubles, of which 23,400 rubles are deducted to the PFR, and all the rest is paid to the FFOMS. Accordingly, since entrepreneurs contribute their share in the PFR, they are entitled to receive an insurance pension. It, in turn, is confirmed by information about IP stored in a single state register.

Age limits and experience

Pension to an individual entrepreneur, as was already said at the beginning, relies upon reaching a certain age. Everything is the same here as in the case of wage earners. For women, the threshold age is 55 years, and for men - 60.

It is important to note that the period during which a person carried out commercial activities (that is, made insurance contributions) is also included in the total length of service on the basis of personified accounting data.

Confirmation of experience

This is worth telling a little more. Many people have questions on this topic. It is not surprising, because the size of the pension of an individual entrepreneur depends on the period of time during which he paid taxes to the state.

As you know, an individual entrepreneur cannot apply for a work book. Accordingly, to make any entries about the beginning and termination of work - as well. But his experience can be confirmed. There are the following documents for this:

• USRIP Record Sheet.
• Notification of registration in the register of individual entrepreneurs.
• Certificate of completion of entrepreneurship.
• Papers confirming the payment of all payments to the FIU.

Previously, instead of the first two documents, it was necessary to present a certificate of registration of IP. But since 2017, it has not been issued, so the list has changed somewhat.

It is highly recommended that you save all documents that can confirm your experience (paperwork related to making payments). If a person worked for hire before the opening of the IP, then he will need to present a work book. After all, this is the main document that appears in calculating the length of service of a citizen.

Contributions from IP

Upon reaching the required age, individual entrepreneurs will receive a pension comparable to the amounts contributed to the funds. Since 2017, the principle for businessmen has been simplified. Now you need to pay taxes and contributions not separately to various authorities, but immediately to the Federal Tax Service.

The easiest way is for those businessmen who do not have a staff. But entrepreneurs with workers will need:

• Pay taxes at the IFTS for employees as well.
• At the end of each quarter, file an employee report with the authority.
• Monthly submit lists of employees in the FIU in the form of SZV-M.
• Every year until March 1, report to the FIU on the experience.

This is all important to consider in order not to get problems from the IFTS.

Calculation formula

It is worth knowing that the size of the pension of an individual entrepreneur directly depends on the size of contributions deducted by him to the FIU. The largest payments can be expected by a person who not only maintains an individual entrepreneur, but also works under a contract.

To predict a potential pension, you can use the online calculator posted on the official website of the FIU. This is a very convenient application, which is based on an algorithm with a formula that includes current calculation indicators. The pension of an individual entrepreneur is determined taking into account the following aspects:

• Fixed payout. At the time of 2017, it is 4,805 rubles and 11 kopecks.
• The average payout (10 823 r).
• Pension coefficient. One is 78.58 p.
• The average salary in Russia this year.
• The size of the salary taxed by insurance premiums. At the moment, it should be 1.6 times the average salary in Russia.
• The default pension period. If a citizen did not apply for registration, then the calculation takes 19 years.
• Mandatory insurance premium rate.

These are the main indicators. But there are others besides them. And you need to tell about them separately.

Additional odds

They are also taken into account when determining the pension of an individual entrepreneur (hereinafter referred to as the letter “DK”). There are several such factors:

• DC used to calculate the basic part of the pension.
• DK, which is 5.
• DK, taking into account the time of military service. For each year, an indicator of 1.8 is assigned.
• DK for maternity leave.
• DC maximum salary. 1 month = 2.3.

As you can see, the pension is recalculated to individual retired entrepreneurs according to a formula that includes many influential components. And in order to finally understand the topic, it is worth making a clear example.

Example

What kind of pension an individual entrepreneur will have depends on the income of his enterprise. Suppose it brings 4,000,000 rubles annually (for example, it is better to take round amounts). Contributions to funds from this income amount to 64,914 rubles. Annually, naturally. Plus 175,085 rubles as a 6% tax payable in accordance with the simplified taxation system, to which the vast majority of entrepreneurs are now transferred.

For example, we can assume that 64,914 rubles a person will contribute to the FIU for another 35 years. What kind of pension can he expect in this case? This can be found out by contacting the notorious calculator. In order for the system to perform the calculation, you will need to enter your personal data. This is gender, year of birth, type of employment, pension option, length of service and annual income.

And this is the calculator’s answer: after working as an entrepreneur for 35 years and annually earning 4 million rubles, a person can count on a monthly pension of 7,910 rubles. In a year it is 94 920 rubles. By the way, the number of its individual odds will be 39.51.

How to increase the ratio?

Paying attention to calculating and indexing the pension of individual entrepreneurs, we can make an obvious conclusion - even with a multimillion-dollar income, a solid pension does not have to be calculated by citizens. Therefore, businessmen do not apply for it until the last, until it becomes possible to conduct their business due to their age.

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

• Voluntary security. If a citizen takes responsibility for caring for an old man, 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 to retirement. By the way, the same amount is added for military service.
• Birth of children. The year of care for the second child adds another 3.6 points (~ 280 additional rubles per month). For the third and fourth coefficient increases to 5.4.
• Increase in length of service. If a man over 65 and a woman after 60 continue to conduct activities, then their ratios begin to grow. But not much. If, for example, a man turns to the FIU at only 75 years old, then he will be assigned a raising factor equal to 2.11. The number of points, in turn, will increase by 2.32 times.

Features worth knowing

They, too, should be addressed, talking about the calculation of pensions to individual entrepreneurs. If a person decided to receive his legal payments, then he needs to submit an application to the FIU a month before. It is necessary to present a work book (if any), a passport and archival documents confirming the experience. Pension is accrued from the day of filing a package of documents. Which, by the way, is allowed to be sent by registered mail with a list by mail.

You can retire early. This happens with the forced termination of entrepreneurial activity. But an early retirement pension can only be granted to men no younger than 58 years old and women over 53 years old. And then in the presence of experience of at least 25 and 20 years, respectively.

IP liquidation

An individual entrepreneur can confirm the experience for a pension by presenting documents proving the completion of his activity. This implies the elimination of IP.

Having decided to close the enterprise, you need to responsibly approach all the nuances associated with this process. First, pay all fees, otherwise sanctions cannot be avoided. If the delay does not exceed 180 days, then the penalty will be 5% of the debt. A longer period of debt entails a fine of 30% of the amount of insurance premiums.

Secondly, the FIU must be contacted within 30 days after liquidation. Otherwise, you will also have to pay a fine.

What else should you know?

Based on everything previously mentioned, it was possible to make sure that the topic related to calculating the pension for individual entrepreneurs contains a lot of nuances. But there are still some points worthy of attention.

At present, the number of pension points accrued by the FIU is 7.83. In 2021, this figure will increase to 10. This means that for each year with maximum contributions (which are equal to 158 648 rubles), the pension will increase. To find out the exact indicator, there is a formula: 78.58 x 10 = 758.80. Here the notorious number of points is multiplied by the cost of one coefficient.

Thus, monthly payments from the FIU for entrepreneurs can reach 30-40 thousand rubles per month. However, this applies only to those businessmen who make maximum contributions annually. And they are laid to people with a really impressive income (reaching 300 million rubles). So the rhetorical question arises - do they need an additional 30-40 thousand per month.

Regarding the minimum, it’s also worth saying a few words. With the minimum IPC for the current year, which is 11.4, the following result is obtained: 4,805 + 11.4 x 78.58 = 5,700 p. And this is much lower than the size of the social old-age pension due to the entrepreneur.

Well, this is all the information that should be familiar to a person who wants to understand the topic regarding pension payments of individual entrepreneurs. People who want to go on a legal vacation, in any case, will have to get acquainted with all the nuances individually. Since when calculating pension payments, nuances relating to the activities of a particular entrepreneur are necessarily taken into account.