Not Just Age: Why Retirement Requires Purchasable Pension Points

Russians dreaming of retiring can purchase missing work history and pension points. But from 1 January 2026, the cost of one such point has increased by 5,000 rubles. Now it costs 65,600 rubles (approx. $722). To learn what this is, who can make such purchases, and how, read the material from NGS.RU.

The increase in the pension point price by 5,000 rubles was announced by Yevgeny Masharov, a member of the Public Chamber of the Russian Federation. According to the expert, to qualify for an old-age insurance pension, a citizen needs to accumulate at least 30 pension points and have an insurance record of 15 years. But missing work history can be purchased (though only up to half), and in 2026, a maximum of 8.7 points can be bought. The cost of one such point is 65,600 rubles (approx. $722).

What are pension points and the individual pension coefficient?

A pension point can be called a conditional unit of capital accumulated by a person over years of work in their personal account at the Social Fund of Russia (SFR). Pension points are also referred to as individual pension coefficients (IPC).

The value of a pension point is set annually in rubles: in 2026, it is 156.76 rubles (approx. $1.72). In 2025, it was lower — 145.69 rubles (approx. $1.60).

«To make it easier to understand the meaning of pension points, let»s compare them to the cashback bonuses popular among many Russians. Earned bonus points can be converted into money with a certain coefficient and then used. This approach applies to pension points as well. A Russian accumulates future pension «cashback» throughout their working life thanks to monthly insurance contributions from their employers to the Social Fund of Russia (SFR). Then they are converted into points using a special formula. Generally, the longer your work history and the higher your «white» salary, which the employer regularly increases, the more pension points accumulate for retirement and the assignment of an insurance pension,« explains Irina Andrievskaya, a financial expert at Vyberu.ru.

The concept of a pension point appeared in the country in 2015. The rules for their calculation are regulated by Federal Law No. 400 «On Insurance Pensions.» For each year of work, a Russian«s pension »piggy bank« in the Social Fund is replenished with a specific number of IPCs. To retire in 2026, a person must earn 30 pension points.

«Simply put, to retire and receive an insurance pension, it»s not enough to grow old and reach the threshold age — in 2026, 59 years for women and 65 years for men. You need to earn enough points (30 IPC) and have 15 years of work history,« continues the expert.

What else can you get pension points for?

If you have accumulated fewer points, people will have to wait another 5 years for a social pension, which, by the way, is lower than the insurance pension, or buy IPCs and missing work history. The state awards points for other socially useful activities, in the authorities« opinion. This can include military service or caring for a disabled person of group I.

Points also accumulate for parents for each year of childcare leave. For example, for the first child up to 1.5 years, one of the parents is awarded a minimum of 1.8 points per year (for 1.5 years — 2.7 IPC), if the employee was officially employed before and after the leave. For the second child per year — 3.6, for the third and fourth — 5.4.

«By the way, from 2026, the previous limit of 6 years of childcare has been lifted: large families will now be awarded points for each child — for the fifth and subsequent ones — 5.4 points per year of care,» said Andrievskaya.

You can check the number of your pension points through the Gosuslugi portal or on the website of the Social Fund of Russia. All information is stored on personal accounts. To check, you need a verified account.

«Any citizen can find out information about their pension through the »Gosuslugi« portal. To do this, you need to log into your personal account, go to the »Pensions and Benefits« tab, select the service »Extract from the personal account in the SFR« and click the »Get extract« button. Within a day, the Social Fund of Russia (SFR) will generate a document that will be available in your personal account. The extract contains personal data, the value of the individual pension coefficient (pension points), total work history, and other information,» explains Alexey Nezhivoy, head of the operational staff of the Independent Trade Union «Novy Trud».

How to purchase pension points?

It often happens that age is approaching retirement, but there aren«t enough points and work history. Then, by law, a person can purchase what»s missing. To do this, you need to conclude a voluntary pension insurance agreement and pay contributions for yourself. Typically, such methods are used by non-working people or those who work for themselves: individual entrepreneurs, lawyers, notaries, arbitration managers, self-employed individuals, or those working abroad. Besides you, any other person can formalize an agreement in your favor. For example, a grandson or a working spouse.

«In cases where a person continues to work and the employer pays pension contributions for them, the meaning of voluntary insurance is somewhat lost. The agreement will allow purchasing missing pension points,» comments financial expert Irina Andrievskaya.

You can purchase no more than 10 points per year and no more than half of the required work history. In the current year — a maximum of 7.5 years. You cannot purchase it «retroactively»; one year of work history is added when a calendar year passes from the moment of concluding the agreement with the SFR. Therefore, it«s better to conclude the agreement at the beginning of the year. To do this, you need to submit an application on the Social Fund»s website or in person by visiting the authority. When it«s approved, you can transfer the money using the details provided to you.

Pension is not a panacea

The Independent Trade Union «Novy Trud» believes that it is possible to receive sufficient funds from pension savings. But it«s worth considering that the cost of living in Moscow and the regions differs significantly, so in modern Russian realities, a pension is »not a panacea.«

«We recommend approaching this issue responsibly to everyone concerned about their future. Currently, it»s trending to talk about the need to create investment portfolios, invest in passive income instruments — in parallel with active earnings and aside from the state pension or long-term savings. We advise ensuring that, in addition to pension programs, other types of savings are formed. This, for example, includes buying real estate for rent — primarily apartments, as well as garages and storage units,« comments Alexey Nezhivoy, head of the operational staff of the Independent Trade Union »Novy Trud«.

According to the expert, a pension is a more reliable instrument, but the income from it is not high. Therefore, on top of everything, maintaining an active economic life will be a plus. If you work under an employment contract, don«t neglect opportunities for additional earnings through flexible, including platform-based, employment — especially if you»re a professional in something, advises Alexey.

«Every person does something better than others in some area. You need to find this sphere and improve in it. If you»ve read the article carefully, you«ll probably agree: this is not a panacea,» concluded Alexey Nezhivoy.

Earlier we wrote that not all Russians should count on large pensions.