Retirement savings

Pension benefits are calculated on the basis of individual indicators of seniority, paid contributions, the existence of an insured person dependent on wives (husbands) who have reached retirement age, or at any age if they raise children under the age of 18 or children with disabilities. In December 2014, the average monthly pension payments of a retired employee amounted to 1328 dollars. But this is an average – someone has experience of 5-6 years, someone has 30 or more years – with the corresponding difference in Retirement savings.


Most pensioners are provided with an insurance pension, and their income is much higher than the minimum. In addition to the mandatory state pension system, there are over 700,000 private pension plans in the country. Among the full-time employees about 80% take part in voluntary funded plans at the place of work. The number and variety of pension plans is growing.

But do not forget that the foundation remains the state pension system with guaranteed pension income, depending on the length of service and earnings – 60% of the total income of pensioners in the country. At the same time, for low-income groups, state pensions are crucial – up to 80-90% of income.

And what about investing pension funds?

One of the main principles of the federal pension program, which remains unshakable for 80 years, is a ban on investing pension funds in shares, bonds of the private market. The pension fund invests workers’ money only in government securities. They are considered low-profit, but reliable. The administration of Barack Obama has remained committed to the basic principles of the federal program, including on investing pension funds. The pension initiatives of the current administration relate to the further involvement of citizens in voluntary pension programs at the place of employment, with the simplification of opening personal pension accounts, aimed at expanding the coverage of part-time employees of small enterprises, all those who do not already have Retirement savings accumulation accounts. The meaning is clear. Money should work. And the risks must be distributed.

Is the risk justified?

It’s as lucky. The basic security for a pensioner is guaranteed in any case. And the system of incentives for an employee to invest in private pension plans at his own risk and risk contributes to the fact that the future pensioner is increasingly responsible for the level of his future retirement income.

The number of pensioners is growing, as in our country, they need to be serviced.

Yes, as the number of pensioners increases, so does demand for rehabilitation, medical care, and household services. This means that there is a demand for those who are engaged in this, including social workers, who are among the most demanded categories of employed.

Life expectancy in the US is higher than in Russia?

Yes, according to the latest information from the United Nations, which provides them to all countries of the world and provides an opportunity to compare, we have an expected life expectancy of 68 years, in the USA – 78.9 years, but for life expectancy, Americans are far from the leading countries – more than 20 countries around the world, located in Europe, America, Asia, life expectancy has already exceeded 80 years.

If an American retired last year, then the average man will receive it about 18 years, and a woman – 21 years.

Recently, the Internet has won an advertising video with the participation of President Obama. He advertised a new health insurance system, often called Obama care and compared to the Franklin Roosevelt Social Security Law.

What is its essence?

It’s about the law on patients’ rights and affordable medical care, which was adopted in 2010 in a tough confrontation between Republicans and Democrats. Criticism of this project has not ceased so far.

Who is protected by health insurance?

Today in the US, medical expenses are fabulous, and even middle-class representatives can not provide for their payment without insurance. Most Americans are covered by private health insurance.

But here, just as in the case of Retirement savings provision, pensioners were the most protected category of the population – thanks to the state health insurance program for pensioners, Medicare. Those who are covered by the mandatory pension system at the federal level are also covered by this program. It starts to operate from the moment of retirement.

For the least well-off groups of the population, there is a Medicaid, established as early as the mid-1960s as a health care program for the poor, but over time, more Americans with an income 2-3 times higher than the poverty line are among its recipients. Today, it is actually used by 65-68 million people.

How is the poverty line in monetary terms defined in the US?

In 2014, the poverty line was about $ 11,700 per year for one person and $ 23,850 for a family of four. That is, with an income of 200-300% of the poverty line – about three thousand dollars a month – you could still get medical help free of charge, such as an X-ray, an initial examination – each state has its own list of services.

Before Obama’s reform, about 14% of the population, mostly employed in small enterprises, did not have any insurance, low-income groups – about 45 million people. Therefore, the new law was of a revolutionary nature. It was even compared with the law of 1935, which for the first time in the country guaranteed workers payment upon reaching 65 years of age.