Retirement age in 2018 in Russia

The government continues to discuss the format of raising the retirement age in 2018, which is confirmed by the latest news from the government offices. Despite the need for this reform to stabilize the budget, officials cannot come to a compromise on the future parameters of innovations.

Latest news and innovations in 2018

Revising the retirement age will balance the existing social security model, experts say. At the same time, the authorities are not in a hurry to launch this reform, which is connected with the delicacy of this topic before the upcoming elections.

The key parameters that officials discuss are the level and frequency of increase. The basic option is to increase the age limit to 65 years for men and 63 for women. At the same time, it is planned to increase this indicator in stages - annually for 6 months. An alternative option is a common milestone for retirement for men and women.In this case, the retirement age in Russia from 2018 can be set at 63 years.

The economic bloc proposes to accelerate the introduction of pension reform. Increasing age will lead to huge savings in public funds, analysts say. If we set this indicator for men and women at the level of 65 and 60 years, respectively, then from 2030 the Pension Fund will save about 630 billion rubles.

Pension, grandfather, old age

The social bloc expects to postpone this measure until a more favorable period. However, experts emphasize that there is no real alternative to stabilizing the pension model.

Future pension reform should take into account demographic features, experts say. The majority of pensioners (about 67%) are women who retire at the age of 55 under the current regulatory framework. At the same time, the average life expectancy after reaching the retirement age for women is 25.5 years. The corresponding figure for men does not exceed 16 years.

In addition, women's salaries are lagging behind the income of men, which is reflected in the level of pensions. If the retirement age rates for men and women are equal, then this will help improve the social security of the weaker sex.

Raising the retirement age in Russia from 2018 can be implemented by analogy with the corresponding reform for civil servants. The revision of the age limit for this category of citizens started this year.

Experiment on civil servants

The increase in the retirement age for employees started this year. Annually, the age limit will increase by 6 months. Until 2032, this indicator for men and women will reach 65 and 63 years, respectively.

In addition to the revision of age, pension reform for civil servants has affected other parameters for the calculation of pensions. The minimum length of service required for registration of a retirement pension will reach 20 years (the reform will be completed before 2026).

Such changes will reduce the cost of the state budget, officials say. In addition, an increase in the age limit will allow retaining the most experienced personnel at work, which will positively affect the efficiency of the state apparatus.
Pension, grandfather, old age

Reform Relevance

Raising the retirement age will remove the excess burden from the state budget. As long as oil prices remained high, the government could postpone this reform indefinitely. However, after the onset of the crisis, the situation changed dramatically.

The budget deficit in the current year will exceed 3%, and next year this figure will be 2.15%. At the same time, the government’s financial reserves were depleted in 2015–2016, which significantly reduces the room for maneuver. In addition, under sanctions, it is difficult for the government to attract resources in foreign markets.

A further increase in the number of pensioners per employee will increase the Pension Fund deficit in the medium term. In addition, the government will not be able to finance the implementation of infrastructure projects necessary to accelerate economic growth.

In such circumstances, the increase will be the most effective measure on the part of the authorities. Given the sensitivity of this issue and the experience of reform for civil servants, future changes will take place in several stages (each year the age will increase by 6 months).

Officials continue to discuss the parameters of future reform. The retirement age for men is planned to increase to 63-65 years. The corresponding figure for women will reach 60-63 years. Experts do not exclude the option with the same boundary for both sexes at the level of 63 years.Such a change will increase the social protection of women.

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