Tuesday , May 18 2021

Zpiz: Be careful when you retire! You can be very familiar with your retirement

STA / M.M. / 11.05.2018., 12:37

The annual or next year's retirement dilemma also takes into account the projected growth in average wage.

The Institute for Pension and Disability Insurance Slovenia (ZPIZ) explained which factors affect the fulfillment of the conditions for acquiring the right to old age or early retirement in relation to this period in this or the following year. Among other things, the expected increase in average wage for this year and the tightening of retirement conditions for insured persons should be considered.

As they said at ZPIZA, when calculating the pension base, due to the mutual comparability of the base from the previous years, they are converted into the value of the calendar year before the year for which the coefficients of valuation are determined. In determining the coefficients of the valuation, the average salary trends per employee in Slovenia in individual years are taken into account.

Zpiz: The immediate increase in full pension would endanger the normal functioning of the pension system

What should you be careful about?

According to the Macroeconomic Analysis and Development Office, the average gross salary in Slovenia this year will grow by more than 3% (the exact percentage will be known on February 15, 2019), meaning that the coefficients of valorisation will also increase by the same percentage in 2019 for the calculation the base from the previous years for insured persons who will be entitled to a pension 2019.

The realization of the pension rights in 2019 also means that the bases from this year will also be taken into account for the calculation of the pension base. In case the insured has a much higher level than the previous years at the holder of the police in 2018, they could have an impact on the amount of the pension base in 1/24, they explained, adding that the pension in 2019 will be adjusted to the rest of the year.

In January, the lowest pension amounted to 207, with the highest amount being almost 2,700 euros

What if you decide to retire this year?

If the insured person decides to earn a pension this year, Ziza's calculations for the pension base will not take into account the average of this year's base, and the calculation of the base from the previous years will take into account the valuation factors calculated on the basis of the average salary in 2017 . The old-age pension will be adjusted at the time of adjustment for this year's reconciliation of pensions – regular adjustment for 2.2 percent and extraordinary adjustment of 1.1 percent.

The rounding-off of the completed retirement age for an additional six months or full-year insured persons must increase the percentage that can be deducted. Such an effect will also delay the retirement even for the insured, regardless of retirement in this or the next calendar year, they have explained. However, they added that the extension of compulsory insurance by the insured meant a lower percentage by 2020, as from January 1, 2020, there will be a third transition period of percentage reduction, which will still be more favorable than the finals that will will be valid after January 1, 2023

Be careful too!

The decision to postpone retirement entitlement may also be affected by a more favorable estimate of the retirement period without a purchase, as each subsequent year of the retirement period without a purchase is estimated at four percent (up to a maximum of three years). Also, retirement retirement entitlement may also be affected by the possibility of claiming a monthly payment of 20 percent of the pension to which the individual would have been entitled on the day of its implementation.

They pointed out that delaying the exercise of early retirement entitlements reduces the percentage of pension cuts compared with missing months up to 65 years of age. In the case of insured persons, in 2018, a pension is reduced for each month of missing age, up to 59 years and from eight months to 64 years. From 1 January 2019 the retirement age will increase to 60 years, so the months will disappear from most of that age up to 64 years and six months.

For some insured persons, such as public sector employees, retirement severance payments also affect the decision on retirement age. In the case of retirement within two months of the fulfillment of the conditions, three average monthly salaries and two other average monthly salaries are explained.

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