Building the Future Today: Financial and Retirement Literacy Lessons for Youth

Since 2011, the Social Fund in the Ivanovo region has been implementing a program to increase pension and financial literacy of the population. At the beginning of the new academic year, several activities under this program have already taken place.

The start of the program was given to students of the 1st year of the College of Management and Law, who came on an excursion to the Ivanovo Branch of the SFR. The guys, having received a ticket at the terminal, went to an appointment with a customer service specialist, where they learned in what life situations people apply to the Social Fund.

Students did not pass by the exposition of old pension cases located in the waiting room. Seeing the genuine interest of the children in archival documents, the specialist of the Social Fund invited them to look into the archives of the Department, where the young people saw thousands of pension cases, including the case of a participant in the Great Patriotic War a hundred years ago.

In the final conversation, the fund specialist said that the pension right begins to form from the first working day of a person. Information on seniority, places of work and other periods that affect the size of the pension is stored on an individual account with the SFR. The number of this account (SNILS) is recorded on a green plastic card, which is issued immediately after the birth of a person.

A similar tour was held for students of gymnasium No. 30.

Lesson on pension and financial literacy was held for fifth graders of Ivanovo Lyceum No 67. On it, a specialist of the SFR Branch in an accessible form told the children why the Social Fund was created, what support measures it provides to citizens.

The children learned that the specialists of the Social Fund accompany a person throughout his life. It is important for the state that a person at every stage of his life path is socially protected. Therefore, care for it begins at birth - payment at the birth of a child, maternity capital, childcare allowance up to one and a half years, payment of sick leave, sanatorium and resort treatment and other social guarantees - up to retirement. Students listened to the experts and asked questions.

A lecture was organized for 300 students of the University of Chemistry and Technology. The specialist of the Social Fund Department told young people how pensions are calculated, why it is important to think about the future in youth, why SNILS is needed, what is dangerous salary in an envelope.

On examples, students saw how the size of the pension varies depending on various factors (experience, salary, etc.). The lecturer paid special attention to official employment.

Summer part-time work on vacation is also included in the length of service and pension coefficients are accrued for it - but only if the employer has officially employed the employee. Many of you combine study with work. Here, too, it is important to understand that it is necessary to work under an employment contract, because even these few years of work in the future will have a positive impact on the amount of pensions, the OSFR specialist drew attention.

Knowledge of the principles of the formation of pensions and the difference between official and informal salary is no less important than professional skills and skills. This will help young people build their careers and protect themselves from hidden risks when choosing an employer.

Students of the Ivanovo Industrial and Economic College learned to calculate the size of their future pension, and a specialist of the Ivanovo Department of the Social Fund helped them in this. She told young people what the pension coefficient is, how seniority affects the size of the pension and how the insurance pension differs from the social one.

Students learned that pensions are granted in connection with certain circumstances: upon reaching retirement age (this is an old-age pension), in connection with disability (disability pension) and in connection with the loss of a breadwinner. All three types of pensions can be insurance or social. The old-age insurance pension is appointed if a person has the necessary experience and the number of pension coefficients. Insurance pension for disability or loss of breadwinner is appointed if a person (breadwinner) had at least one day of service. Students asked if there was a pension for people who had never worked?

“If a person has never been officially employed or has worked for a very short time, he or she will still be granted a pension. But such a social old-age pension is appointed 5 years later than all others. In addition, it will be much smaller than those who worked under an employment contract. That is why it is important to officially get a job and receive a completely white salary - even if we are talking about a short part-time job on vacation, the expert explained.

To consolidate the knowledge gained, students at all sites were given a textbook “All about future pensions”. Such classes will continue until the end of this year.