Pensions in Russia

The number of pensioners 42 million people

The number of pensioners as of January 1, 2022 amounted to just over 42 million people, which is 970 thousand less than a year earlier. This is the maximum decrease since the beginning of the 1990s, but the indicator does not take into account the recipients of pensions in the system, Ministry of Defence, MINISTRY OF INTERNAL AFFAIRS UK, etc. (about 2.7 million people).

What makes up the pension

Since 2002, pensions in Russia have been divided into three parts:

• basic - minimum state-guaranteed payment, a kind of "poverty insurance,"
• insurance (joint venture) and
• accumulative. The funded part financed by the payment of insurance premiums by the employer. For example, in December 2012, 22 percent is charged to the salary of each working Russian, which is sent to the Pension Fund of the Russian Federation (payment is made within the framework of a 30 percent insurance premium). Six percent is the funded part, the remaining 16 takes the FIU for current payments to pensioners (insurance part).

Citizens transfer six savings interest under the management of the Criminal Code or non-state pension funds (NPFs), the state will begin to return this money to them after retirement (the money of those who have not transferred savings funds anywhere is managed by VEB). The latter has a more conservative investment model: in successful years for the market, it earns less for pensioners than NPFs, but in unsuccessful years it sags less.

Pension reform

It was in the division of pensions into two parts that the authorities found a loophole to reduce the current budget deficit. They decided that from now on, not six percent of the salary will be sent to the funded part, but two percent, and promised future pensioners higher basic payments. The state asked those who disagree with the reform from among the "silent" (that is, those whose money is managed by VEB, and not by a private pension organization) to write a special statement by January 1, 2014, which would allow them to leave six percent in the funded system.

It was assumed that during 2013 each Russian will have to decide whether he wants to participate in the funded system, and write an appropriate statement if he decides to keep the 6% funded component.

At the same time, the Russians were asked to choose whether they want to give their four "accumulative" interest in the joint venture or keep all six percent. How long the pension choice will be valid and whether the savings part will be taken from the Russians by default is unknown. At the same time, as of June 2013, most Russians do not know anything about pension choice.

Also, as a result of the reform, it is assumed that in 2013 the authorities will double social taxes for the self-employed population (tutors, taxi drivers). Insurance premiums will also be increased for workers in harmful industries who are entitled to an early pension (for example, miners or women working in the textile industry).

How to prevent a reduction in the funded part of the pension

In order to maintain the existing pension system, the "silent" need half an hour of time and firm confidence that they want to leave everything as it is - otherwise there is a great temptation to throw everything halfway.

You can write a statement remotely - through the portal of public services - or in the branch of the Pension Fund. To understand which department to come to and what documents to carry with you, you need to call the appropriate hotline (8-800-510-55-55). You need to contact any nearest pension fund.

You need to take with you to the pension fund:

• passport,
• SNILS (insurance number of individual personal account; such a small green certificate that theoretically every working Russian should^[1].

You don't need to make a special appointment, you just need to remember that pension funds work up to six in the old fashioned way with a lunch break.

The request to maintain the funded part of the pension in August 2013 is not surprised at the fund, although, it seems, there are not very many people who want to keep six percent. After viewing the passport and SNILS, the operator prints a special form and asks to sign. The formal part ends there - on the hands of the visitor there is only a sheet of the A4 format without printing (see below), which will have to prove in which case that the appeal to the Pension Fund was received.

The document received by the client who signed the application for the preservation of the 6 percent funded pension

Thus, maintaining the funded part of the pension in the same amount is a matter of 15 minutes, which must be spent during working hours.

Pension formula

2013: Discussion in Government

The new pension formula was launched on January 1, 2015. For June 2013, the new tool was only discussed in the government. The formula developed by experts attracted by the Ministry of Labor (including a significant part of the specialists of the Academy of Public Administration under the President of the Russian Federation) should have been presented earlier, but did not have time - back in April 2013, President Vladimir Putin criticized the government for disrupting the preparation of the formula.

The formula does not change the structure of the pension much: it still consists of the insurance, basic and funded parts. The basic part will remain the minimum state payment. The funded part will, as before, be transferred under the management of a non-state pension fund, insurance or management company to the choice of a citizen. Changes will occur only with the procedure for calculating the insurance (joint) part.

The new pension formula takes into account the insurance part of the pension of Russians not in rubles, as modern, but in points called pension coefficients. For each worked year, a citizen is charged a certain number of coefficients. The number of accrued coefficients depends on the size of the salary and the length of service of the citizen (for example, additional coefficients are charged for work after retirement). At the same time, it is clear from the formula that military service and the birth of children in terms of the size of the pension are not very profitable. The year of military service adds 0.85 pension coefficient. The same amount adds a year of first child care; each year of care for the second and third add 1.7 and 2.85 coefficients. For comparison, a year of work with a salary of about 60 thousand rubles brings almost ten pension coefficients.

At the same time, a tool is included in the pension formula that allows the government to reduce pensions. We are talking about the cost of the pension coefficient itself. As of June 2013, it is estimated at 57.9 rubles, but the government may revise the indicator depending on the demographic situation, the number of pensioners, and the volume of insurance premiums collected. According to experts, by 2030 the demographic situation in Russia will deteriorate, therefore, the cost of the pension coefficient may be revised. The government is aware of the problem and has even begun to fight the future deficit of the pension fund, deciding to greatly reduce revenues to the early pension system. But this step alone is unlikely to be enough.

2015: Entry into force of the coefficient system

On January 1, 2015, a new pension calculation system came into force in the Russian Federation, according to which the insurance part of the labor pension will be calculated not in absolute figures, but in pension coefficients. The maximum number of coefficients will earn those for whom employers pay insurance premiums to the FIU in full and from the maximum salary. Citizens who have scored less than 30 points, that is, who have worked for 30 years with a salary of 1 minimum wage, cannot apply for an insurance pension.

It is assumed that in the Russian Federation for citizens born in 1967 and younger, the pension will consist of two parts - insurance and funded. The employer transfers 16% of the employee's earnings to the Pension Fund for the insurance pension, and 6% to the funded pension fund. However, in 2014, it was decided to freeze the funded part of the pension and transfer 6% of the earnings that previously went to its formation to the Pension Fund. The freezing of the funded part of the pension was extended for 2015.

Average pension size

As of June 2013, the average pension in Russia is about 10.6 thousand rubles (about $330) per month.

In November 2013, the average amount of assigned pensions in Russia, according to preliminary data from Rosstat, amounted to 10060 rubles, which is 9.7 percent more than in the same month of 2012 in nominal terms and 3 percent more in real terms. The ratio of the average pension to the average salary in Russia in November 2013 was 32.8 percent. A year ago, this share was 33.4 percent.

Pension calculator

On June 25, 2013, officials introduced a new pension calculator. At the presentation, his Minister of Labor Maxim Topilin said that the tool is not designed to accurately calculate the future pension. According to him, the calculator only makes it possible to predict a pension subject to certain behavior in the labor market. Prior to that, it was reported that its main goal is to make pension reform understandable for every citizen. The idea of ​ ​ creating a pension calculator for this purpose was also supported by President RossiiVladimir Putin.

The calculator posted on the websites of the FIU and the Ministry of Labor calculates the pension based on a number of individual indicators:

• of the floor of the Russian,
• military service life,
• estimated length of service,
• average salary (only the "white" salary from which insurance premiums are paid is taken into account),
• the term of work after retirement age, as well as
• accrual fee.

Obviously, the calculation will be more than approximate: for example, the salary of the same employee can vary greatly during work. In addition, the calculator does not take into account inflation and shows the future pension in modern figures - in fact, it predicts the amount that a citizen would receive if he retired tomorrow.

"Лента.ру" tested the calculator for different groups of the population - and this is what^[2] resulted^[2].

For "average" Russians

The average salary in Russia, according to Rosstat, is 26.7 thousand rubles. Suppose that a man, having worked for 40 years (for example, he began working at 20), decided to retire, as established by law, at 60. At the same time, he served in the army for two years (counted in the total work experience) and decided to choose a pension savings rate of two percent. In this case, his pension will be 14,692 rubles per month. This is more than the modern average pension: in 2013 it in Russia is about 10.6 thousand rubles. True, if the same citizen decides to work for only 30 years (and spends the remaining 10 on study or retraining), his pension will be only 11,425 rubles.

For Muscovites

The average salary in Moscow in 2013 is about 54 thousand rubles. With an experience of 35 years, the average Muscovite who did not serve in the army, after retiring at 60 years old, will be able to count on a monthly payment of 21.8 thousand rubles. For comparison, if his pension was calculated according to the current rules, he would receive only 17 thousand.

For those who have worked little

If a citizen has less than 15 years of official work experience, then he will be able to count only on a social old-age pension, which is now 3.7 thousand rubles. The new order will come into force from 2025. Men will be able to receive a social pension from the age of 65, and women from the age of 60. According to the government, almost 40 million Russians now do not pay pension taxes, so perhaps this is the number of people who will have to live on an old-age social pension. The pension of citizens formally listed at work, but hiding real incomes, will also not be too high. For example, if a Russian works for 20 years with an official salary of 10.5 thousand rubles, his pension will be only 5.7 thousand rubles.

For Stakhanovites

Working after the retirement age greatly increases the future pension. For example, if the "average" Russian from the first example decides to work up to 62 years old, then his pension will increase by three thousand to 17.4 thousand rubles a month. Suppose that a citizen will work after retirement for another five years (before that, having served two years in the army and worked for 40 years), and his average salary will be 30.5 thousand rubles. In this case, he will be able to count on a pension of 25.1 thousand rubles a month. The maximum pension that a citizen can count on is 76.5 thousand rubles. To do this, you need to work for 10 years after retirement and receive a salary of at least 61.38 thousand rubles.

For the rich

Pensions of 70 thousand rubles, which Deputy Prime Minister Olga Golodets spoke about, can only be achieved through work after retirement. In fact, the increase in payments without work after the onset of retirement age ends after exceeding the salary threshold of 61.38 thousand rubles. Having worked with such a salary for 40 years before retirement age (without military service), Russians will be able to count on a pension of 27 thousand. A citizen with an average salary of 100 thousand per month will have exactly the same pension.

For women

Women have the right to retire five years earlier than men, so they will have less experience directly by retirement age. For example, a Russian woman who began working at the age of 18 and graduated at 55 (total experience of 37 years) and received an average salary of 26.7 thousand rubles in the country, will be able to count on a pension of 13.8 thousand rubles a month, which is 800 rubles less than a man with the same salary. If a woman decides to work until the age of 60, despite the fact that her salary was 30.5 thousand rubles, then the pension will be 23.7 thousand rubles.

For mothers

Parental leave is included in the total work experience, but not more than one and a half years for each child. However, many mothers do not always "fit" into the norm. Suppose that a woman who began working at the age of 18 gave birth to three children and in total did not work for 10 years. At the same time, she decided to retire at the age of 60, and her salary was equal to the national average (26.7 thousand rubles). In this case, she will spend a total of about 27 years at work, and her pension will be only 11 thousand rubles. This is almost three thousand less than if she had met the 1.5 years allotted for child care.

For thrifty

All of these examples concerned citizens who chose a pension savings tariff of two percent (read more about the pension choice in the cut). The Ministry of Labor has repeatedly stated that the choice in favor of a solidarity system for Russians is more profitable. The calculator refutes the forecast of officials: for those who chose a six percent funded component, it promises pensions for several hundred rubles more. At the same time, it is not entirely clear what such calculations are based on: the size of citizens' savings depends on the effectiveness of management companies, and officials may not always influence their strategies. Citizens born before 1967, on the contrary, do not have an accumulative component. Consequently, the pension calculator promises them pensions for several hundred rubles a month less.

According to the calculator of 2013

The 2013 pension calculator is based on the new pension formula, which is expected to work from January 1, 2015 (see the section "Pension formula" above). For June 2013, the new tool is only being discussed in the government. As for the current version of the pension calculator, it does not emphasize the attention of citizens on a possible revision of the "rules of the game." In fact, the instrument shows not a future pension, but the amount that the state will owe to the Russian if nothing in the economy changes.

Pensions of the Ministry of Internal Affairs are

The number of pensioners receiving a pension in the Ministry of  Internal Affairs  by January 1, 2021 amounted to 1.108 million. The Ministry of Internal Affairs overtook the army in the number of pensioners.  1.092 million people receive a pension at the Ministry of Defense.

 There are already more retired police officers than active employees and they take a quarter of the department's budget.

The average pension of a pensioner of the Ministry of Internal Affairs from 2011 to 2019 increased 2.1 times -  from 9,354 to 19,616 rubles.

A police officer retires - at 40 − 45 years old with more than 20 years of service.

Amount of pension reserves and savings

2023: The total pension portfolio in NPF and the Social Fund of Russia for the year increased by 7.2% and exceeded 7.5 trillion rubles

The total portfolio of pension funds in Russia by the end of 2023 amounted to more than 7.5 trillion rubles, which is 7.2% more than a year earlier. Such data are given in the report, which the Central Bank of the Russian Federation published at the end of April 2024.

It follows from the regulator's report that the largest growth rates in 2023 are pension reserves of non-state pension funds (NPFs). Their volume by the end of this period reached 1.8 trillion rubles. Pension savings of NPFs increased by 6.8% and amounted to 3.3 trillion rubles. Pension savings of the Social Fund of Russia increased by 6.2%, to 2.4 trillion rubles.

The total portfolio of pension funds in Russia by the end of 2023 amounted to more than 7.5 trillion rubles

According to the Central Bank, the weighted average yield of NPFs for 2023 on pension savings amounted to 9.9%, on pension reserves - 8.8%, which exceeded the annual inflation figure - 7.4%.

The number of Russians forming savings in NPFs in 2023 decreased by 308.6 thousand people to 36.3 million. And the main factor in reducing the number of citizens forming savings in NPFs is an increase in the number of clients excluded from the number of insured persons due to death, the regulator said.

The number of participants in the voluntary pension system decreased by 186.8 thousand people, to 6.1 million citizens, which is mainly due to the clarification of approaches to filling out reports. In accordance with the old procedure for filling it, the number of participants in non-state pension provision (NGO) increased over the year.

The total variable part of the remuneration (success fee) received by pension funds based on the results of their activities on compulsory pension insurance (OPS) in 2023 amounted to 41.4 billion rubles, the permanent part (management fee) - 24.8 billion rubles. Thus, in total, NPFs received 66.2 billion rubles for the disposal of pension savings of Russians. In 2023, they took rewards worth 43.8 billion rubles.

OVERVIEW OF KEY INDICATORS OF NON-GOVERNMENTAL PENSION FUNDS

2012: Savings of 1.9 trillion, reserves - 700 billion rubles

As of August 2012, the amount of pension reserves is about 700 billion rubles, the total amount of pension savings is 1.9 trillion.

Non-state pension funds

Main article: NPFs in Russia

Pension insurance in Russia

Main article: Pension insurance in Russia

History

2023

The share of working pensioners in Russia reached 60%

The share of working pensioners in Russia in 2023 exceeded 60%. This was announced on February 25, 2024 by Deputy Prime Minister Tatyana Golikova during the congress of the Russian Union of Industrialists and Entrepreneurs.

Due to the increase in the retirement age, we are increasing by almost 2.7 million people the number of employees who remain in the economy due to the increase in the retirement age (...) Even after the registration of pensions, the labor market is returned, according to our observations, from 60% to 63% of those who have issued a pension, - said the Deputy Prime Minister (quoted by Interfax).

The share of working pensioners in Russia in 2023 exceeded 60%

Golikova stressed that the trend towards an increase in the number of employees up to 25 years will be observed until 2030. In the future, until 2030, the projected number of people employed in the economy will be 73.6 million people.

According to a survey by the research center of the SuperJob.ru portal, which were published in 2023, 27% of Russians gather to work or earn extra money after retirement, and among people under the age of 34, almost one in three (32%) have such plans. According to the study, women are more likely than men to plan to continue working after retirement - 32% and 24% of respondents, respectively. The older the respondents, "the more often they realize that they will not be able to accumulate a sufficient amount of money, they are sure that they are unlikely to work actively in retirement, and the more often they say that they will live on state payments," analysts say SuperJob.ru.

The gap between the pensions of working and non-working pensioners reached almost 6 thousand rubles (in favor of the latter) against 4.4 thousand a year ago, follows from the data of the Unified Interdepartmental Information and Statistical System (UIISS) for 2023.^[3]

In Russia, the number of pensioners decreased by 1.7% to 41.075 million people

As of January 1, 2024, the number of pensioners registered with the Social Fund of Russia (EMF) amounted to 41.075 million people, which is 699.9 thousand people, or 1.7%, less than a year earlier.

As RBC writes with reference to the materials of the SFR, the main contribution to the reduction in the number of pensioners in 2023 was made by the recipients of the old-age insurance pension - the largest category. They have decreased by 885.8 thousand people (33.38 million at the end of the year), follows from the data of the EME. The number of recipients of other payments (independent of seniority and pension points), on the contrary, was growing. Thus, the number of disability pensioners increased by 91.7 thousand, to 2.23 million people, recipients of social pensions - by 52.9 thousand, to 3.41 million people, pensions for the loss of the breadwinner - by 12.7 thousand, to 1.44 million people.

In 2023, the pace of reduction in the number of working pensioners slowed down significantly. At the end of the year, there were 45.9 thousand fewer of them, while a year earlier - 600 thousand people. By January 1, 2024, 7.87 million working pensioners were registered with the EME. Experts interviewed by the publication believe that the dynamics were influenced by the situation on the labor market. Employers are experiencing a shortage of personnel and try to leave age workers as long as possible.

The EME also provides the following statistics for 2023:

• the average size of an old-age insurance pension increased by 8%, to 22.4 thousand rubles;
• disability pension - by 8.5%, up to 13.6 thousand rubles;
• payments for the loss of the breadwinner - by 9.3%, up to 14.9 thousand rubles;
• the size of social pensions increased by 3.2% - to 12.5 thousand rubles.

The average amount of payments for all categories of pensioners in 2023 increased by 7.6%, to 20.87 thousand rubles. In 2023, a break was announced in the appointment of old-age pensions, it will also be valid in 2025 and 2027^[4]

The regions of the Russian Federation with the largest pensions are named

According to the Social Fund of the Russian Federation, the average pension in Russia in the third quarter of 2023 amounted to 21.8 thousand rubles. Moreover, the maximum regional pension exceeds the minimum by almost 2.5 times.

Regions with the highest pensions:

• Chukotka Autonomous Okrug - 39.9 thousand;
• Nenets Autonomous Okrug - 34.8 thousand rubles;
• Magadan region - 34 thousand rubles;
• Kamchatka Territory - 33.6 thousand rubles;
• Yamal-Nenets Autonomous Okrug - 32.7 thousand rubles.

Regions with the lowest pensions:

• Kabardino-Balkar Republic - 17 thousand rubles;
• Dagestan - 17.3 thousand rubles;
• Karachay-Cherkessia - 18.6 thousand rubles;
• Kalmykia - 18.6 thousand rubles;
• Crimea - 18.7 thousand rubles.

The size of the pension depends on a number of factors. The old-age pension consists of two parts: fixed (7.6 thousand for 2023) and insurance, which is formed from pension points. The cost of points and a fixed part are indexed depending on the inflation rate and the subsistence minimum in the region. As Aghvan Mikaelyan, a member of the board of directors of the audit and consulting network FinExpertiza, noted in a conversation with Izvestia, the level of pensions varies, among other things, due to the cost of living in the regions of the Russian Federation. In particular, everything costs much more in Chukotka than in Kabardino-Balkaria.

Northerners receive a supplement to a fixed pension by 50% higher, which as of 2023 corresponds to 11.4 thousand rubles, says Yulia Dolzhenkova, professor at the financial university under the government of the Russian Federation. Additional payments can be made on two grounds: if a person has northern experience or lives in such regions, she noted. To receive funds, you need to work in the subject for 15 years. According to Dolzhenkova, the gap between old-age payments in the future will continue to grow due to changes in regional indicators, including wages, in nominal terms.^[5]

The results of the introduction of a funded pension were recognized as unsatisfactory

The decision to introduce a funded pension in 2002 was justified and could significantly improve the well-being of future pensioners, but the de facto consequences of the reform were rather unsatisfactory. Such conclusions were reached by scientists from the RANEPA, their study was published in early August 2023.

Scientists expressed the opinion that the system of mandatory pension savings from the very beginning of implementation faced serious difficulties. The state considered the stability of the traditional solidarity pension system more important than the development of mandatory pension savings. The authorities, trying to achieve the goal of improving the welfare of pensioners, regularly introduced various innovations and restrictions, and also redistributed potential contributions to the funded pension to finance insurance. These changes, experts say, have largely reduced the effectiveness of pension savings and the trust of the population in them.

Among the main adjustments that negatively affected the course of the reform, the RANEPA included:

• the decision made in 2005 to withdraw from the system of compulsory pension savings (OPN) men born in 1953-1966 and women born in 1957-1966;
• postponing the timing of the selection of a trust manager of savings and the opacity of NPFs (all this made it difficult for citizens to choose an informed choice of private management companies and NPFs);
• provided in 2012 the opportunity to abandon the funded pension;
• freezing pension savings since 2014.

The Ministry of Finance of the Russian Federation agreed that the creation and development of the funded component of the compulsory pension insurance system coincided with a period of difficult economic conditions. This, according to the department, negatively affected the profitability of investing savings of NPFs.

Of course, the annual profitability received by non-state pension funds based on the results of investment from the moment their activities began was insufficient for a number of objective reasons, the department clarified RBC, without naming these reasons.[6]

2022

Due to the increase in the retirement age, the labor market in 2018-2022. received an additional 1.7 million employees

Due to the increase in the retirement age, the labor market in 2018-2022. received an additional 1.7 million workers, most of whom were able to find a job. This is stated in the RANEPA report published in early October 2023. Read more here.

Rosstat counted 41.8 million pensioners

In early July 2023, Rosstat cited updated data on the number of pensioners who are registered with the Pension and Social Insurance Fund (Sotsfond) - by January 1, 2023, we are talking about 41.77 million people. At the same time, 34.27 million of them receive an old-age pension, 2.13 million - for disability.

As Kommersant writes about a reference to Rosstat materials, more than 10 million people receive a monthly cash payment (EVD), which is provided, among other things, to war veterans, disabled people, as of January 1, 2023. Statistics do not include data from new regions - DPR, LPR, Kherson and Zaporizhzhya regions.

Social pensions that receive, including people with disabilities, were indexed by 3.3% from April 1, 2023. According to Rosstat, as of January 1, 2023, there are more than 10.9 million disabled people in Russia. By that time, there were 285.3 pensioners per 1000 people in Russia.

Rosstat recalls that "since 2023, the publication of information on the total number of pensioners, including pensioners of law enforcement agencies, has been suspended, only the number of pensioners registered with the Pension and Social Insurance Fund has been given."

According to the Social Fund for 2022, the highest average pension for those who receive it for seniority is 850,500 rubles, and for working pensioners - 920,134. Such pensions can be assigned to federal civil servants, military, astronauts and employees of flight test personnel in the presence of long experience.

A study by YouDo and HeadHunter, conducted in February 2023, showed that almost a third of pensioners in Russia are forced to constantly save. At the same time, 2.5% of respondents are satisfied with their income, and 33.5% of recipients of benefits have enough money only for the most necessary things.^[7]

After retirement, Russians continue to work for 7.47 years

After retirement, Russians continue to work for 7.47 years, which is the highest value since 2011. This is evidenced by data Rosstat for 2022.

As RBC writes with reference to the materials of the department, in 2011, pensioners continued to work for another six years after the start of receiving payments, and in 2020 this figure increased to 7.02 years. In 2022, recipients of disability pensions worked longer than others: their work experience was 11.82 years. Those who receive early labor or military pensions continue to work for almost 7.5 years. It is clarified that they begin to accrue payments earlier than the generally established retirement age, which in 2022 was 61.5 years for men and 56.5 for women.

Nevertheless, Russians who have reached the "usual" old-age pension upon reaching the generally established retirement age work on average only 2.3 years. This figure decreased 2.5 times compared to the previous study in 2020 - then the experience was 5.82 years. Of the 17.8% of working respondents, 6% (that is, a third) have experience from one to four years after the appointment of a pension, another 6% - from five to nine years, Rosstat said.

The results of the Rosstat study are surprising: back in 2016, there were more than 15 million working pensioners, that is, during this time their number has almost halved, Alexander Safonov, a professor at the Financial University under the government, told RBC. In addition, due to the pension reform, the retirement age is shifting, and the survival period, although growing at the end of 2022, does not exceed the pre-pandemic level. These factors should speak rather in favor of reducing the indicator, which is evident in the decrease in the average work experience of recipients of "civil" old-age pensions, Safonov is convinced.^[8]

The number of pensioners in Russia for the year decreased by 232 thousand people

As of January 1, 2023, the number of pensioners registered with the Social Fund of Russia (SFR, formed as a result of the merger of the Pension Fund and the Social Insurance Fund) amounted to 41.78 million people, which is 232 thousand, or 0.6%, less than a year earlier. Such data were published by the EME in mid-February 2023.

As RBC writes with reference to the materials of the Social Fund of the Russian Federation, the reduction in the number of pensioners has slowed down more than four times compared to 2021, when it reached 970 thousand people, setting an absolute anti-record since the early 1990s. We are talking about the number of pensioners registered with the SFR: this indicator does not include recipients of pensions in the system of the Ministry of Defense, the Ministry of Internal Affairs, the Investigative Committee and other law enforcement agencies.

In addition, there were fewer working pensioners - their number decreased by 7%, or 600 thousand, to 7.9 million people. This is the minimum since 2004, when their number was 7.8 million people.

In 2022, the covid (COVID-19) factor in reducing the number of pensioners has not yet fully exhausted itself, although it has decreased, believes Alexander Safonov, professor at the Financial University under the government. It is expressed not so much in the direct mortality from coronavirus, the statistics of which no longer even appear in the public domain, but in the exacerbation of chronic diseases.

Along with the reduction in the number of pensioners in Russia, the average pension increased - up to 20.7 thousand rubles. The decrease in the number of pensioners was due to a sharp decrease in the number of workers - there were 600 thousand fewer of them, while the number of non-working pensioners increased by 369 thousand people, which may indicate that some of the working elderly people decided to stop working.

According to the SFR, the growth of the old-age insurance pension in 2022 amounted to 14%, the social pension - 12.1 thousand rubles (+ 18.9%), and disability payments - 12.5 thousand rubles (+ 13^[9]

The yield on the savings of the "silent" 9.7% with inflation 11.9%

In 2022, the profitability of pension savings of the "silent," managed by VEB, amounted to 9.7% with inflation of 11.9%.

The number of working pensioners in Russia has decreased to a minimum in 18 years

As of October 1, 2022, the number of working pensioners in Russia amounted to 8.1 million people, a decrease of 413.6 thousand people compared to July 1, 2022. Thus, their number has become minimal since 2004 (then it was 7.8 million), writes RBC with reference to the data of the Pension Fund of Russia (PFR) and Rosstat.

At the same time, we are talking about pensioners registered with the FIU. Recipients of pensions in the system of the Ministry of Defense, the Ministry of Internal Affairs, the Investigative Committee and other law enforcement agencies were not included in the statistics.

The number of working pensioners in Russia has been declining over the past six years - since 2016. The annual decline was recorded in the range from minus 430 thousand to minus 210 thousand. The exception was only 2018, when the number of working pensioners in the country decreased by only 2 thousand citizens compared to 2017, according to the publication of the publication.

After the indexation of pensions in June, the gap between average payments for working and non-working pensioners has significantly intensified. If as of April 1, 2022 the difference was 3.4 thousand rubles. (14.2 thousand against 17.7 thousand rubles), then as of October 1, it reached 4.6 thousand rubles. (14.7 thousand against 19.4 thousand rubles), follows from the data of the FIU. The issue of resuming the indexation of pensions for working pensioners is regularly raised by parliamentarians from opposition factions: in particular, at the end of August 2022, LDPR deputies submitted a corresponding bill to the State Duma. However, the initiative was not supported by the government.

Working retirees receive a pension and a fixed payment to it without annual indexations. However, after dismissal, the insurance pension is accrued taking into account an increase in the amount of indexations missed during the work activity.^[10]

FIU: Self-employed and working abroad can "buy" seniority for retirement

In mid-July 2022, the Pension Fund of Russia announced that the self-employed and those who worked abroad would be able to "buy" experience for retirement.

Pension insurance in Russia is mandatory and applies to all working citizens. Pension contributions, according to its rules, are formed and paid by employers. At the same time, there are a number of cases when a person himself can make contributions to retirement, - reported in the FIU agency "Prime."

Exceptions include the situation when a Russian citizen works abroad and wants his pension at home to continue to accrue. In this case, he can pay the contribution on his own. He also has the opportunity to pay a contribution and form a pension for an unemployed loved one.

The FIU added that contributions can also be made by those who work for themselves in order to increase the existing pension rights or fully form them from scratch. "The latter, in particular, refers to the self-employed applying the tax on professional income," the agency quotes representatives of the FIU.

As explained in the fund, the minimum amount of insurance premiums is calculated as a 12-fold increase in the product of the minimum wage (minimum wage) at the beginning of the financial year, and the rate of insurance premiums. At the same time, the maximum amount of insurance premiums cannot be higher than the 12-fold increase in the production of eight minimum wages and the rate of insurance premiums.

At the beginning of 2022, the minimum wage was set at 13,890 rubles. Therefore, the amount of insurance premiums for the calculation period 2022 year should be 36,669,6 rubles (1MROT x 22% x 12).

The maximum amount of insurance premiums cannot exceed the amount defined as the product of eight minimum wages and the rate of insurance premiums to the FIU, increased 12 times (8MROT x 22% x 12 months). For 2022 year, this amount will be 293,356,8 rubles.^[11]

For 10 years, SberNPF paid 490 million rubles to Muscovites on a funded pension

For 10 years SberNPF , he paid to Muscovites 490 million on a funded pension. rubles This was Sber announced on July 4, 2022.

71% of Muscovites are aware of their pension savings management capabilities, SberNPF found out by interviewing 13 thousand residents from Russian cities with a population of more than 500 thousand people.

The OPS system, which forms the future pension of Russians, consists of two parts - insurance and funded pensions. In the funded part exactly 10 years ago, on July 1, 2012, legislative norms came into force that allowed Russians to receive pension payments under the OPS: a lump sum payment, a funded pension or a fixed-term pension payment. Prior to this, only successors received payments.

Over these 10 years, 8.7 million Russians have become clients of SberNPF within the framework of the OPS. This is one of the highest indicators in the NPF market.

During this period, the fund paid residents of the capital:

• 405.5 million rubles for a lump sum payment;
• 55 million rubles for a funded pension (paid for life and monthly);
• 29.9 million rubles for urgent payment (may be appointed at the request of the insured person indicating a certain period during which he wants to receive funds, but the payment period cannot be less than 120 months).

Under compulsory pension insurance contracts, slightly more than 13 thousand residents of Moscow received payments.

NPF Sberbank is actively introducing digital services for customers. So, five years ago, the fund's website had the opportunity to apply for payments for OPS remotely - 11 thousand Russians have already used the service. And at the beginning of 2022, an option was launched that allowed successors to apply for payments online on the SberNPF website (1.5 thousand applications were submitted).

In addition, the fund's clients can remotely issue an application for updating their personal data, order an extract with account information or a copy of the agreement. 88% of customers who issued an account statement in 2022 did so remotely. And 80% of customers who ordered copies of contracts received them electronically.

{{quote 'author = said Vyacheslav Tsybulnikov, Vice President of Sberbank - Chairman of Moscow Bank. |

We see that Muscovites have an interest in the topic of pension savings: more than 70% know how to manage these funds. And this, according to polls, is one of the highest rates among Russian regions. Informatively shows the data on the funded pension service "Pension Showcase" in the SberBank Online mobile application: with the help of this service, the user can see his accumulated amount and find out which organization manages his savings today, }}

{{quote 'author = noted Victor Polyakov, Operations Director of SberNPF. |

Judging by our surveys and research, more than half of Russians know how to manage their pension savings under the OPS. And we see that every year the number of clients who have transferred their pension savings to us and are happy with the service is growing - for us this is the best reward. We work hard to ensure that all the necessary information on OPS is available and understandable to our customers. In the personal account on the SberNPF website, the client can see data on his savings and their profitability. Moreover, our service in the SberBank Online mobile application in the Pensions section shows users who are not our clients which organization manages their pension savings - the Pension Fund of Russia or another NPF. So we try to increase awareness and financial literacy of Russians and contribute to the development of the industry,}}

2021: Mishustin approved a proactive mechanism for paying pensions

At the end of June 2021, Prime Minister Mikhail Mishustin signed a decree, which, among other things, approved a proactive (without filing applications) mechanism for paying pensions. You will not need to go to instances and fill out papers. Read more here.

2019

PFR allocated 7 trillion rubles for the payment of pensions

In 2019, the Pension Fund of Russia (PFR) allocated more than 7 trillion rubles for the payment of pensions, which corresponds to 88% of its budget. This was stated by the Minister of Labor and Social Protection Anton Kotyakov at a meeting of the Government of the Russian Federation.

The budget execution of the Pension Fund for expenses in 2019 amounted to 8 trillion 627 billion rubles. Over 88% of the Pension Fund - this is 7 trillion 660 billion rubles - is aimed at paying pensions, he said.

According to Anton Kotyakov, the average size of an old-age insurance pension for non-working citizens in 2019 increased by 1,089 rubles and amounted to 15,496 rubles. At the end of 2019, the FIU received 511 billion rubles more funds than a year earlier. At the same time, 61% of income was insurance premiums for compulsory pension insurance.

The income received by the Pension Fund of the Russian Federation from the placement of pension savings in deposits of credit institutions amounted to 12.57 billion rubles in 2019 . This amount corresponds to a yield of 8.9% per annum and significantly exceeds the inflation rate for the last year (3%).

For comparison, the profitability of investing pension savings on the expanded portfolio of the state management company ВЭБ.РФ in 2019 amounted to 8.7%. The total return on investment of pension savings by non-state pension funds for 9 months of 2019 amounted to 8.9%.

 During the year, the FIU held 22 deposit auctions, as a result of which 52 deposit agreements were concluded.

Kotyakov added that in 2019 , the FIU fulfilled social obligations to pay pensions and benefits, as well as to increase the pension material provision of citizens on time and in full.

In 2019, 516 billion rubles were allocated for cash payments to socially unprotected citizens, and 291.5 billion rubles were allocated for the payment of maternity capital.^[12]

Most Russians do not make savings for retirement

On November 6, 2019, according to a survey of residents of large cities, the Raiff eisen Bank reported that the majority of Russians do not make savings for retirement. At the same time, the respondents said that it is necessary to save money for old age, and it is necessary to start as early as possible. The average income, sufficient for a decent life in retirement, was estimated by the respondents at 80-90 thousand rubles. At the same time, most plan to work in retirement, as well as live off savings and income from real estate. The survey was conducted in Moscow, St. Petersburg, Yekaterinburg, Nizhny Novgorod, Kazan, Chelyabinsk, Omsk, Samara, Rostov-on-Don, Ufa, Krasnoyarsk, Perm, Voronezh and Volgograd.

70% of Russians were interested in the issue of forming a state pension, but most of the respondents do not understand the process of its formation until the end, a study conducted by Raiffeisen Bank showed. In the course of the survey, the respondents were divided into three age groups - 20-30 years, 30-40 years and 40-50 years.

68% of respondents expect that the state pension will be less than 20 thousand rubles. In the older age group, 75% of respondents believe that the state pension will amount to 20 thousand rubles, and 22% believe that it will be less than 10 thousand rubles. Only 2-3% of respondents of all age groups count on a state pension of 40-60 thousand rubles or more.

The vast majority of respondents - 75.5% - do not make savings for retirement. At the same time, 38.6% simply do not save, and 36.9% said that they would like to save money, but do not yet have such an opportunity. 16.3% save money periodically, and only 8.3% save for retirement regularly. And this behavior is almost independent of age: in all age groups, 8-9% of respondents regularly save up, and 14-17% do it from time to time.

"Creating a pillow safety is a basic element of financial literacy. And this implies regular savings of about 10% of monthly earnings. Pension savings, in our opinion, are the same necessary thing. At the same time, you can use different products: traditional deposits and savings accounts or special products that imply annuity payments upon reaching retirement age. Do not forget about real estate: the return on investment will be small, for the presence of own housing significantly reduces future expenses, " noted Maxim Stepochkin, head of the non-credit products department of Raiffeisen Bank

At the same time, the respondents emphasize that you need to save up for retirement, and you should start as early as possible. Almost 30% of respondents said that savings should be started at the age of 20, from the age of 30 they advise 23.7% of respondents to save. Another 17.2% believe that you need to save for retirement from the age of 40 and 6.5% from the age of 50.

About 25% of respondents save for retirement regularly, and can use several tools at the same time. The most popular ways to save money for old age were a deposit and a savings account in the bank - this answer was given by 39.2% of respondents. 28.5% announced investments in securities. 16.5% have an individual contract with NPFs, and 3.8% use corporate programs in which the employer co-finances the employee's future pension. 7% have funded products from insurance companies that imply regular payments.

The choice of instrument varies markedly with age. In the younger age group, 58% of respondents have a deposit or savings account, 36% make investments in securities, 21% cooperate with NPFs, and no one uses the services of insurance companies. In the group of 30-40 years, 31% have a deposit, 49% have a savings account, 33% of respondents buy securities. 20% have contracts with NPFs (personal or corporate), 6% use the products of insurance companies.

In the older group (40-50 years old), 36.5% have a contribution, and 24.3% of respondents have a savings account. 21.6% of respondents make investments in securities, more than 20% use the services of NPFs, and almost 11% - insurance companies.

The level of income sufficient for living in retirement averaged 80-90 thousand rubles for all age groups. The expectations of the older group are a little more modest: here 40% of respondents called a sufficient amount of 31-50 thousand rubles. In the group of 31-40 years old, the most popular answer (42%) is 51-100 thousand rubles. In the younger group, income was most often called sufficient 31-50 thousand rubles and 51-100 thousand rubles - 31% and 34% of respondents, respectively.

At the same time, 7.6% of respondents of all age groups will not count on the state pension - in their opinion, all their income in old age will come from other sources. 36.4% of respondents believe that the state pension will make up a smaller part of their income, 16.9% said that the state pension will account for most of the funds received. Only 7% are counting on the state pension.

The Russians plan that in retirement their income will be formed at the expense of several sources. Most plan to continue working after retirement - this was stated by more than 61% of respondents. 55.2% plan to receive a state pension. 60.8% will use savings - deposits, savings accounts, income from securities. 24.5% count on the help of children and relatives, and this answer differs markedly with age: at 20-30 years old, 30% of respondents rely on this source, at 30-40 years old - 27%, and at 40-50 years old - only 20%.

44.1% of respondents plan to receive real estate income (rental or sale), and 25.4% rely on pension in NPFs.

Pensions for labor migrants

In June 2019, it became known that Russia will begin to pay pensions to labor migrants from the countries of the Eurasian Economic Union - Armenia, Belarus, Kazakhstan and Kyrgyzstan.

The decision is being prepared as part of a pension agreement within the union.

According to the document, which was prepared in March and must be ratified by the EAEU member countries by the end of 2019, the country in which the migrant worked and made contributions to the pension fund will pay him a pension even after returning to his homeland.

The new measures will help restore the influx of labor migrants, which last year collapsed to a minimum in the entire post-Soviet history and ceased to cover the natural population decline.

2018

Regions with the highest and lowest pensions

The Pension Fund of the Russian Federation has published an infographic, which clearly presents the regions of Russia with the largest and smallest pension payments. The infographic was compiled on the basis of data relevant for December 2018.

Medvedev announced an increase in the retirement age

After a transition period starting in 2019, the retirement age will be 65 for men and 63 for women, the task of phased entry is to step-by-step reach retirement at 65 for men in 2028 and at 63 for women in 2034.

For most people who were preparing to retire in the near future, the changes will be smooth and the increase in the retirement age "will take place gradually," Dmitry Medvedev emphasized. "For example, men born in 1959 and women born in 1964 will be able to retire in 2020, respectively, at the age of 61 and 56. Men born in 1960 and women born in 1965 will be eligible for retirement in 2022, respectively, at the ages of 62 and 57. And the younger generation still has enough time ahead simply to adapt to new borders, "said[13] Minister[14].

2017: Ministry of Economic Development predicts real-terms pension cuts over three years

The macro forecast of the Ministry of Economic Development assumes a reduction in pensions of Russians in real terms in 2018-2020. Vedomosti wrote about this with reference to the text of the document in September 2017, the reliability of the data was confirmed to the newspaper by two unnamed federal officials.

According to the forecast of the Ministry of Economic Development, in 2018 pensions will be reduced by 0.7%, and then by another 0.6% annually.

The main contribution to the decrease in payments in real terms will be made by the refusal to index pensions for working pensioners - this measure reduces the overall real growth of pensions by almost one percentage point. Pensions of non-working pensioners will be reduced only in 2018 - by 0.1%, and then remain unchanged.

One of the officials who participated in the discussion of the forecasts told Vedomosti that it was wrong to talk about reducing all pensions at once. He recalled that working pensioners have the main income. The forecast of the Ministry of Economic Development says that, taking into account the main earnings, the income of working pensioners in real terms will increase, but more slowly than the incomes of the entire population.

2013: Plan to raise the retirement age for women

In August 2013, officials, together with experts from the Academy of Civil Service and the Higher School of Economics, prepared new measures to save budget funds, including a proposal to raise the retirement age for women. Vedomosti writes about this in the August 28 issue with reference to a report on optimizing budget expenditures.

The retirement age for women is proposed to be raised from the current 55 to 60 years over ten years starting in 2019.

As part of the pension reform, several more measures are planned:

• indexing the basic part of the pension not higher than the inflation rate,
• cancellation of the annual adjustment of the insurance part of the pension for working pensioners.

The largest saving item may be the refusal to pay part of the basic pension to working pensioners whose total income exceeds 2.5 of the minimum wage. The report provides a number of measures for discussion, through which it is possible to save 1.2 trillion rubles by 2020. Savings under the pension reform can amount to 1.7 trillion rubles over the same period.

As part of the development of pension reform, various measures are proposed in Russia, but the authorities categorically refuse to raise the retirement age. In particular, in April 2013, President Vladimir Putin stated that the use of this measure was inappropriate. According to him, it is necessary to look for other sources of reducing the deficit of the Pension Fund. Prime Minister Dmitry Medvedev also assured that there would be no increase in the retirement age.

In May 2013, head of state Vladimir Putin criticized the government for the lack of a pension formula understandable to the population. Putin instructed to develop a formula by the fall and submit it to the State Duma for discussion.

2012

Putin instructed to prepare options for using pension savings

Russian President Vladimir Putin instructed by the end of 2012 to prepare options for using "long money" - two trillion rubles of pension savings. Of these, 1.5 trillion rubles have accumulated in the accounts of VEB, which manages the savings of the "silent," and the rest - in the accounts of the Criminal Code and NPF. The head of state noted that there are no relevant mechanisms yet, and it is necessary to develop a legislative framework that allows using these funds to issue infrastructure bonds.

In November 2012, the Ministry of Transport estimated that about a trillion rubles of pension money could be used to develop all types of transport. This, as reported by RIA Novosti, said the head of the department Maxim Sokolov.

"A trillion pension funds are unlikely to be allocated immediately at the first stage. This is impossible, most likely, it will be an amount several times less, "the minister said. According to him, now the Ministry of Economic Development is preparing amendments to the legislation that will allow using pension money to finance infrastructure projects

.

In general, the volume of investments in transport, both public and private, should be 4-4.5 percent of GDP (in 2011 - 54.369 trillion rubles). This was announced on November 23, 2012 by Deputy Transport Minister Oleg Belozerov. Now, according to him, less than 0.5 percent of GDP is invested in the development of transport in Russia annually.

At the end of 2011, funds from the National Welfare Fund (NWF) were also proposed to be spent on transport. As the business media wrote with reference to unnamed sources, the main supporters of such measures are state-owned companies such as Russian Railways. They plan to issue infrastructure bonds under state guarantees, and these securities are supposed to be bought by the NWF or the Pension Fund.

New reform - a return to the 1990s model

The initiator of the next reform of the pension system was Russian President Vladimir Putin. He instructed the departments, including the Ministry of Labor and the Ministry of Finance, to prepare a draft reform by October 1, 2012.

On August 2, 2012, it became known that the Government of the Russian Federation will have to choose from two options for pension reform proposed by key ministries. The final decision will be made by the authorities in September 2012^[15].

The reform itself should begin in 2013. One version of the reform is proposed by the Ministry of Finance, the other by the Ministry of Labor. The Ministry of Finance insists on a softer pension reform. In particular, officials of the department consider it necessary to stimulate a later retirement of citizens, increasing it by 6 percent for each additional year worked, as well as increase the minimum work experience required for a pension from 5 to 10 years.

The ministry also proposes to involve the self-employed population (tutors, taxi drivers, nannies) in the pension system and force them to pay insurance premiums, as well as abolish a number of pension benefits. In addition, the department proposes to smoothly increase insurance premiums for harmful industries, whose employees have the right to an early pension. Through these measures, the Ministry of Finance plans to reduce the deficit of the Pension Fund to 0.46 percent of GDP by 2020. Now the figure is about two percent of GDP (almost a trillion rubles).

The second, "tougher" option is offered by the Ministry of Labor. The department considers it necessary to introduce an additional tax for corporations with harmful industries - their employees retire earlier. The rate of insurance premiums for them is proposed to increase by 6-9 percentage points (now 30 percent). The agency also agrees with the position of the Ministry of Finance on the self-employed population, but additionally proposes to increase the threshold for earnings subject to insurance premiums (now contributions to earned over 512 thousand rubles a year are 10 percent).

The main point of the reform - the Ministry of Labor calls for a reduction in the funded part of the pension from 6 to 2 percent, and to send the released funds to eliminate the deficit of the Pension Fund. In return, officials want to develop voluntary corporate pension programs. Due to these measures, it is planned to balance the country's pension system by 2016, reducing the PFR deficit by more than 400 billion rubles.

In addition, the project of the Ministry of Labor proposes since 2015 to provide citizens with the right to voluntarily refuse the funded part of the pension. If the future pensioner decides to keep the funded part, then he will have to transfer part of the salary to it on his own.

• On August 2, 2012, it became known that the Ministry of Finance will develop a universal pension product that would be offered to citizens, banks insurance companies and non-state pension funds (NPFs). The newspaper "" writes about this in the issue of August 2 Sheets with reference to the corresponding bill.

The order to develop the product was given by Deputy Prime Minister Olga Golodets, who oversees social issues in the government. It is assumed that this universal product will become an alternative in case of cancellation or reduction of the funded part of the pension. The conditions for such products have not been determined, but it is known that the period of participation in the new funded program will be at least 10 years.

In turn, the Ministry of Finance proposes to stimulate employers and citizens to participate in the new funded system through tax incentives. Contributions to the pension program and income from their investment will not be taxed. So far, investment income from pension money with voluntary insurance is taxed. The bill is due to come into force in 2014.

So far, banks cannot place the pension savings of Russians in their accounts. Citizens' money is managed by NPFs that invest them in securities. The funds of people who have not transferred their money to this or that NPF (the so-called "silent") are managed by the state VEB. It invests primarily in government bonds.

As of August 2012, the amount of pension reserves is about 700 billion rubles, the total amount of pension savings is 1.9 trillion. Russian President Vladimir Putin called for the placement of pension money in bank accounts back in March in one of his articles.

• On September 9, 2012, Russian Deputy Prime Minister Igor Shuvalov said at a press conference at the APEC summit that the Russian authorities did not intend to cancel the funded part of the pension.

"We do not cancel any part of the funded pension, these are all rumors," Shuvalov said. The government is working on how to eliminate the Pension Fund deficit, the first deputy prime minister said, adding: "There are different proposals for modernization. There are no proposals for cancellation. "

• On November 23, 2012, a bill reforming the pension system of Russia was adopted by the State Duma immediately in the second and third readings.

In accordance with the document, from January 1, 2014, the size of the funded part of the pension will be reduced from the current six percent from salary to two. The remaining four percent will be redistributed into the insurance (joint) part of the pension.

According to the head of the Duma Committee on Labor and Social Policy Andrei Isaev, those who want to leave the previous procedure for transferring the funded component of the pension (in the amount of six percent) will need to write appropriate statements by December 1, 2013. For those Russians who will not write such an application, from the beginning of 2014, the funded contribution to the pension will decrease to two percent.

As Isaev added, in the future, citizens will most likely be given the right to change the percentage transferred to the funded part of the pension - for example, once every few years. This issue will still be discussed.

Initially, it was assumed that the main provisions of the pension reform, in particular, on reducing the size of the funded contribution, will begin to operate from the beginning of 2013. However, on November 14, 2012, President Vladimir Putin, who generally supported the reform, proposed delaying the start of its introduction until 2014.

The main task of pension reform is to reduce the budget deficit of the Pension Fund. Funds that should be released by reducing the funded component can be directed to current payments to pensioners.

The draft reform was prepared by the Ministry of Labor and presented to the President after approval by the government in early October 2012. Now the bill, after adoption by deputies in three readings, must pass the Federation Council, and then enter the signature of the president.

• In early December 2012, it became known that the new pension formula, which is planned to be introduced in Russia in the near future, will take into account the work experience of citizens and their wages, and not the amount of social taxes paid - insurance premiums, as at that time. The newspaper Kommersant writes about this with reference to the updated draft pension strategy, which was at the disposal of the publication.

Thus, the new pension formula is similar to the one that operated from 1992 to 2001. Then the size of the pension depended on two parameters: the ratio of wages to the national average and the internship coefficient, the newspaper notes. Now the size of the citizen's pension depends on the amount of insurance premiums that he paid - the amount is divided by the period of his survival.

In addition, according to the newspaper, the updated pension strategy contains new deadlines. If earlier it was supposed to carry out the reform in three stages - 2013-2015, 2016-2020 and 2021-2030, now there are only two stages proposed: 2012-2013 and 2014-2030. At the same time, the main changes are planned for 2013.

In addition, the updated strategy provides for an increase in the minimum length of service required for a pension to 15 years. Now the figure is five years, and at the end of November, Deputy Prime Minister Olga Golodets stated that it was planned to raise the minimum length of service to 10 years.

Russian President Vladimir Putin instructed to introduce an updated version of the pension strategy by December 15, 2012. It is assumed that the draft pension reform approved by the government in October will be finalized, but its main provisions will remain unchanged^[16].

IMF offers Russia to raise the retirement age to 63 years

In 2012, women in Russia retire at 55, men at 60. The minimum work experience required for retirement is 5 years. An increase to 10 or 15 years is being considered (see History below).

Experts propose raising the retirement age for women from the current 55 to 60 years over ten years starting in 2019 (proposals from August 2013). So far, the authorities categorically refuse to raise the retirement age. In April 2013, President Vladimir Putin stated that the use of this measure was inappropriate. According to him, it is necessary to look for other sources of reducing the deficit of the Pension Fund. Prime Minister Dmitry Medvedev also assured that there would be no increase in the retirement age.

In January 2015, there were reports that the Ministry of Labor plans to calculate payments of the funded part of the pension from 2016, taking into account the sex of the pensioner and the age of termination of work. For women who retire earlier, and live on average longer, the payments of the funded part of the pension were offered to be distributed for 270 months, and for men - for 227 months. Such a calculation method, according to which women would receive a pension less than men, caused criticism from the State Duma deputies, after which the Ministry of Labor announced that the final decision on its application had not yet been made.

After a transition period starting in 2019, the retirement age will be 65 for men and 63 for women.

In August 2012, the International Monetary Fund proposed that Russia raise the retirement age for men and women to 63 by 2030 and to 65 by 2050. This was stated by the head of the Russian representative office of the IMF Odd Per Brekk^[16].

"This corresponds to the life expectancy of people of the appropriate age," the representative of the fund emphasized.

Brekk explained that the pension costs of the Russian budget are 8 percent of GDP; this, he said, corresponds to the level of developed countries, but by 2050, taking into account the retirement age and demographic problems, pension spending will increase to 18 percent of GDP. "As for the retirement age, this is an issue that cannot be avoided," said the head of the representative office. Brekk noted that Russia has no opportunity to increase the tax burden as part of the pension reform.

The IMF has developed its own version of pension reform for Russia. In addition to raising the age, other provisions of the reform are not specified. According to the fund's experts, the implementation of the proposed measures will allow Russia to maintain pension spending within 8 percent of GDP by 2050.

2008: Plan to increase the average pension to 26,538 rubles by 2020

1967: Reduction in the retirement age by 5 years: from 65 to 60 years for men and from 60 to 55 years for women

On September 26, 1967, Resolution of the Council of Ministers of the USSR No. 888 "On Measures to Further Improve the Welfare of the Soviet People" was adopted, according to which the retirement age was reduced by 5 years: from 65 to 60 years for men and from 60 to 55 years for women.

1964: Law on the introduction of pensions for collective farm members passed

15.07.1964 in the USSR, the Law "On Pensions and Benefits to Collective Farm Members" was adopted, which introduced state pensions for agricultural workers on a par with workers and employees who received the right to pensions in 1956.

Salaries in Russia

Main article: Salaries in Russia

Notes