Wednesday , October 27 2021

Zpiz: Caution when you will retire! You can be very familiar with your pension


STA / M.M. / 11/05/2018, 12:37

The annual or next year's retirement dilemma should also take into account the assumed growth in average wages.

At the institution of retirement and disability in Slovenia (ZPIZ) they explained the factors that affect whether a more favorable pension this year or next year, if the conditions for the acquisition of the right to old-age or early retirement pension are met. Among other things, the expected growth of the average salary for this year and the tightening of pension conditions for insured persons should be taken into account.

As they said about Zpiz, the pension calculation is calculated based on the mutual compatibility of the base from previous years, calculated to the value of the calendar year before the year for which the valorization coefficients are determined. In determining the valuation coefficients, the average salary per employee in Slovenia is taken into account in individual years.

Zpiz: Immediate increase in full pension would jeopardize the normal functioning of the pension scheme

What should you be careful about?

According to the Macroeconomic Analysis and Development Agency, the average gross salary in Slovenia increases by more than 3% this year (the exact share will be known on February 15, 2019), which means that the valorization coefficients will also increase by the same percentage in 2019 for the calculation of bases from previous years for insured persons who will exercise the right to retirement in 2019.

The exercise of the right to retirement in 2019 also means that the bases of this year will also be taken into account when calculating the pension base. If the policyholder has a significantly higher level than the previous years with the policyholder in 2018, they may affect the size of the pension amount in 1/24, they explained and added that the estimated pension in 2019 should be adjusted as the rest.

In January, the minimum pension was 207, and the highest payment was almost 2 700 euros

What happens if you choose to retire this year?

If the policyholder decides to exercise pension entitlements this year, according to the notes Ziza, calculating the pension base will not take into account the average of the bases from year to year and the calculation of the bases from previous years is taken into account by the valuation factors calculated on the basis of the average salary in 2017. The retirement pension will be adjusted when adjusting for the year's reconciliation of pensions – regular reconciliation by 2.2 percent and an extraordinary adjustment of 1.1 percent.

The rounding of the completed retirement period to another six months or a full year to policyholders shall increase the deductible. Such an effect will also delay retirement even with policyholders, regardless of pension this year or next calendar year, they explained. However, they added that the insured's extension of compulsory insurance will mean lower percentages by 2020. Since January 1, 2020, a third transition period will reduce the percentages for them, where they will still be more favorable than the last ones that will be valid after 1 January 2023

Be careful too!

The decision to postpone exercise of the right to retirement may also be affected by a more favorable assessment of the pension period without purchase, as each subsequent retirement year without purchase is valued at four percent (up to a maximum of three years). The subsequent exercise of the right to retirement may also be affected by the possibility of requesting a monthly payment of 20 percent of the pension to which the person would be entitled at the date of enforcement.

They clarified that the postponement of exercise of the right to early retirement will reduce the proportion of retirement loss in relation to the missing months up to 65 years. For policyholders, in 2018, a reduction in the pension is calculated for each month of age, not more than 59 years and from eight months to 64 years. As of January 1, 2019, the retirement age will increase to 60 years, so the missing months will count from most of this age up to 64 years and six months.

For certain policyholders, such as employees in the public sector, the severance pay on retirement is also affected by the decision on retirement age. At retirement within two months after the fulfillment of the conditions, three average monthly wages and otherwise two average monthly wages were explained.

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