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Zpiz: Be careful about retirement! You can be very well aware of your retirement


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

The annual or next year's retirement dilemma should also take into account the expected average wage increase.

They explained in the Slovenian Institute for Pension and Disability Insurance (ZPIZ) what factors affect whether a more favorable year of retirement this year or the following year is fulfilled if the conditions for entitlement to old age or early retirement are met. Among other things, account should be taken of the expected increase in this year's average wage and a tighter increase in the retirement age of insured persons.

As they said to Zpiz, when calculating the pension base based on the comparability of the basis with the previous years, they are converted into the value of the calendar year preceding the year for which the valorisation coefficients are fixed. When determining the weighting coefficients, the average wage trends per employee in Slovenia in certain years are taken into account.

Zpiz: An immediate increase in full pension would undermine the normal functioning of the pension system

What should you be careful about?

According to the Macroeconomic Analysis and Development Bureau, the average gross salary in Slovenia will increase by more than 3% this year (precise percentage will be known on February 15, 2019), which means that the percentage will increase with the same percentage as in 2019 calculate the base from previous years for insured persons who will use their pension rights.

The implementation of the pension rights in 2019 also means that the calculation of the pension base will also take into account the basics of this year. In the event that the policyholder is in 2018 a policyholder with a policyholder is significantly higher than in previous years, they may affect the amount of the pension fund of 1/24, as they explained, adding that then the estimated pension will be adjusted in 2019 as the rest.

In January, the lowest pension was 207, and the highest paid was almost 2700 euros

What if you decide to retire this year?

If the policyholder decides to use pension rights this year, according to Ziza's remarks, the base rate for this year will not be taken into account for the calculation of the pension base, and estimation factors calculated on the basis of the average wage in 2017 will be taken into account when calculating bases from previous years. The old-age pension will be adjusted during the correction this year by matching pensions – by regular alignment with 2.2 percent and emergency correction of 1.1 percent.

A rounding off of the retirement period for additional six months or a full year will increase the deductible interest rate for policyholders. They explained that such effects would delay retirement even for policyholders, regardless of whether they were retired in this or next calendar year. However, they added that an increase in the compulsory insurance premium for insurers by 2020 would mean a lower percentage because, starting from 1 January 2020, they will receive a third transitional period for interest rates, which will remain more favorable than the latter, which will be in force after 1 January 2023

Be careful too!

The decision to postpone the implementation of pension rights may also be affected by a more profitable assessment of the retirement age without a purchase, since each year of the next year of pensionable life, without a purchase, is valued at four percent (up to a maximum of three years). The further exercise of pension rights may also be affected by the possibility of claiming a monthly payment of 20% of the pension to which a person would be entitled on the day they were paid.

They stated that the postponement of the use of early retirement rights would reduce the percentage of reduction of pensions in relation to missing months up to the age of 65 years. In the case of policyholders, in 2018, a reduction in the pension is calculated for each month of the missing age, ranging from a maximum of 59 years and from eight months to 64 years. From 1 January 2019, the retirement age requirement will increase to 60 years; therefore, missing months will be counted from the highest of that age to 64 years and six months.

For some policyholders, such as employees in the public sector, retirement benefits are also affected by a retirement age decision. In the case of exclusion, three average monthly wages and the other two average monthly wages were explained within two months after the fulfillment of the conditions.

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