People with modest savings or those who lack the required work duration and pension coefficients can withdraw their savings in this manner. In total, the Social Fund assigned lump-sum payouts to 593,000 clients over the past year, nearly RUB 80,000 per client on average.
Unlike an insurance pension (before 2015 – labour pension), which is assigned exclusively in the form of monthly payments, pension savings can be paid out all at once. This exact option remains the most widespread to date: the main flow of applications still comes from Russians who have made contributions over a short period and accrued an amount that can be withdrawn as a lump sum.
As per the rules in force, contributory pension payouts become available upon reaching the former pension age: 55 years old for women and 60 for men. Those entitled to an early retirement may apply for their savings even earlier, but the required pension coefficients and work duration requirements shall be met in that case. For now, this includes 30 coefficients and 15 years of work. Starting from age 55 or 60 (for women and men respectively), work duration and coefficient requirements do not apply when assigning a lump-sum payment of pension savings.
Worth noting that savings withdrawal is an application-only service, rendered after an individual applies for it. You can do that on the Gosuslugi Portal, as well as at any customer office of the Social Fund or a multifunctional center that provides such a service. If the contributions are being paid to a private pension fund, the application for a lump-sum payment, just like for any other pension savings assignment option, should be submitted to that private fund rather than the Social Fund of Russia.
Under the procedure in force, the lump-sum payout is done within two months after the decision to assign the funds is made: the time needed to settle all the procedures related to withdrawing the contributions from the managing company that invests them.
Also remember that pension savings can be inherited. In the event of an individual's death, their savings are handed over to the beneficiaries designated by application or by law. They receive the full amount of accumulated funds if the contributing individual was not able to assign them during their lifetime. After the assignment, any unpaid balance is guaranteed only within the framework of a fixed-term pension savings payment.