On March 12, 2025, it was announced in Volzhsky, Russia, self-employed individuals—those who operate outside traditional employment structures—are exempt from mandatory pension insurance contributions. This exemption means many such citizens might find themselves without adequate pension provisions come retirement age. They are, nevertheless, entitled to independently establish their own pension plans.
Currently, the situation has led many self-employed citizens to grapple with the reality of potentially insufficient work experience and individual pension coefficients, which are necessary for pension qualification. Despite the hurdles, the number of self-employed individuals taking proactive steps to secure their retirement has been steadily climbing. According to reports, 837 people utilized their right to form their pension independently during the previous year.
To initiate this process, interested self-employed individuals must engage with the Department of the Social Fund of Russia for the Volgograd region. They can do so by entering voluntary legal arrangements related to mandatory pension insurance.
Applications to commence contributing to one’s pension must be lodged through the Gosuslugi portal or directly at any regional client service of the Social Fund. Once registered, individuals can begin making voluntary contributions, which they determine themselves.
The magnitude of these contributions is defined by legislation, with minimum annual contributions set at 59,241.60 rubles and maximum caps at 473,932.80 rubles. Notably, the more one contributes, the higher their pension coefficients will be, which directly affects the total pension amount at the time of retirement. “The more contributions, the higher the pension coefficients,” emphasizes information from the region's social service offices.
Importantly, self-employed citizens should note the payment of voluntary contributions for the current financial calendar year cannot be retroactively applied to the previous year. If during the reporting period the self-employed citizen pays less than the established minimum annual contribution, their accumulated work experience will be proportionately determined by the actual amount deposited.
For this year, all voluntary contributions must be completed by December 31, 2025, which rates alongside the pension system's established guidelines. For anyone stepping forward to secure their financial future through these voluntary plans, they must meet specific conditions set for aging insurance pensions. These stipulate achievement of designated retirement ages—58 years for women and 63 years for men as of 2025, increasing by 2028 to 60 and 65 years, respectively. Also, individuals must attain up to 30 individual pension coefficients and have no less than 15 years of insurance experience to qualify for old-age insurance pensions.
Failure to achieve these stipulated benchmarks results in individuals losing their right to old-age insurance pensions. Instead, they are relegated to receiving only social pensions starting five years post-retirement age. These social pensions are restrictive, not exceeding the subsistence minimum amount.
For those with inquiries or needing guidance on the new pension structures, support numbers remain available. “If you have questions, you can always contact the specialists of the Department of the Social Fund of Russia for the Volgograd region,” urges the office, sharing contact points to facilitate community access to necessary information.
This proactive approach allows many self-employed individuals to rest easier knowing they are now more equipped to manage their retirement savings and prepare adequately for their future. Starting from April 1, 2025, additional changes will also see indexed social pensions and government-provided pensions rise by 14.75%. This significant increase, announced by the Russian government, reflects the growing cost of living and helps to provide additional support for retirees.