14 june 2018
On June 14, the Russian government approved a federal bill “On the Adjustment of Certain Russian Legislative Acts Pertaining to the Assignment and Payment of Pensions” prepared by the Russian Labor and Social Protection Ministry.
The bill aims at a phased increase of the retirement age, upon which an old-age insurance pension will be assigned.
The bill legalizes the general retirement age at 65 years for men and 63 years for women. The current retirement age is 60 years for men and 55 years for women, respectively. The retirement age phased increase is planned to be started on January 1, 2019.
The adjustments will not apply to current pensioners of the Russian Pension Fund. Just like before, they will be receiving pensions and social benefits consistent with the acquired pension and benefit rights. What is more, a higher retirement age will help increase pensions of non-working pensioners higher than inflation rates, according to the Russian president’s order No. 204 dated May 7, 2018, “On National Objectives and Strategic Development Goals of Russia in the Period until 2024.” The increased retirement age will enlarge pensions of non-working pensioners by almost 1,000 rubles per year. Over the past three years, pensions were increased by 400-500 rubles per year on the average. Pensions grew by 399 rubles in 2016, 524 rubles in 2017, and 481 rubles in 2018.
The retirement age will be raised smoothly over a long transitional period from 2019 till 2028 for men and from 2019 till 2034 - for women. The transitional period will be 10 years for men, and 16 years for women.
At first, the higher retirement age will apply to men born in 1959 and women born in 1964. Consistent with the transitional period, the men will retire at an age of 61, and the women will retire at the age of 56 in 2020.
Growing life expectancy in Russia
The retirement age is increased due to a new demographic situation in the country and the world trend of population ageing. In the period from 2000 till 2017 alone, the life expectancy in Russia grew by 8.5 years for men (from 59 to 67.5 years), and by 5.4 years for women (from 72.26 to 77.64 years). According to Rosstat’s forecast, the life expectancy in Russia will reach 72.3 years for men (5.8 years up from 2017), and 82.1 years for women (4.5 up from 2017) in 2024. By the time the transitional period ends and the retirement age reaches 65 years for men and 63 years for women, the life expectancy will grow by 7.6 years for men to 75.1 years and by 7.64 years for women to 85.28 years in 2028, compared to 2017.
As of now, practically all countries have raised the retirement age. The retirement age started increasing worldwide in the 1980s.
Amongst Eurasian and East European countries close to Russia by their living conditions, all countries but Uzbekistan (which has declared the goal of raising the retirement age to the world’s average) have raised the retirement age by now. The retirement age has been set at 65 years for men in Moldova and Azerbaijan, and the retirement age has been set at 63 years for women in Armenia and is growing in Kazakhstan. The Baltic republics (Estonia, Latvia, and Lithuania) will increase the retirement age to 65 years by 2025–2027, while countries of Western Europe (Germany, Spain, and Italy) will increase the retirement age to 67 years for both men and women in the 2020s.