Former Russian Finance Minister Alexei Kudrin predicts that the government will decide on raising the retirement age in the country in 2018 – after the next presidential election.

“I think in three years, after the presidential elections, still be raised the retirement age, – he told reporters on the sidelines of the new York session of the forum of the Moscow exchange. According to him, “this is the best balance for the pension system”, reports TASS.

“The deficit in the pension system today is almost 50% financed from the Federal budget, it is a great burden, said the former Finance Minister and now the head of the civil initiatives Committee, earlier proposed to hold early presidential elections in the Russian Federation and declare a new program of reforms. – The government should decide to raise the retirement age or reducing other important expenditures, such as education, health, social policy or infrastructure”.

The decision to freeze pension savings in 2016 has already taken

On the eve of Prime Minister Dmitry Medvedev at a meeting with party leadership “United Russia” has declared: “it is Obvious that sooner or later the issue of retirement age will need to address. So. But on the other hand currently, the preconditions in order, as some suggest even my colleagues in the government, you should immediately change the retirement age, we don’t have”.

“We will not do, despite the fact that this budget will save lots of money, and even though, thank God, is life expectancy in our country has significantly increased”, – the Agency quotes PRIME.

Deputy Prime Minister Olga Golodets at the beginning of October said that the government is not discussing the question of raising the retirement age in the near future. “Now the pension age will not rise. Let’s all calm”, she said to reporters within the framework of the investment forum in Sochi. Then Golodets said that “on all pension issues point in our discussion will be delivered on 7 October”.

Earlier Finance Minister Anton Siluanov said that the issue of raising the retirement age in Russia should be urgently addressed. This will allow, according to him, not only reduce burden on the budget, but also to smooth over “the consequences of the demographic situation”, when the working age starts to enter the relatively small generation of the 1990-ies.

At the end of September the Ministry of Finance suggested to start to raise the retirement age from 2016, in phases, every year for six months to 65 years, as the Department predicts the complete exhaustion of the Reserve Fund and national wealth Fund in 2018. The Ministry of Finance proposal was supported by many officials, but against the spoke of the social block of the Cabinet, supervised Golodets.

At the meeting on budget estimates from President Vladimir Putin on 22 September said the supporters of both upside and preservation of the retirement age in Russia at the current level – 55 for women and 60 for men. As reported, the President listened to the views of those and others, but no decision was reached.

This year the deficit of the Pension Fund of Russia is projected to be 8%, or 623 billion. The share of the working-age population – that is, those whose contributions fed current retirees, will fall to 57% in 2050 (from 70% in 2010), predicts it.

To solve the problem of shortage of the FIU, the authorities have to choose the option that is certainly not too pleasant. One of them is a direct reduction of pension benefits or the indexation freeze. But this option is highly undesirable, it may increase social discontent, since the average pension and so barely above subsistence level.

However, if you do not find additional sources of funding, the pension will still be reduced. The replacement ratio of salary to retirement, which is now on average about 40%, in 2050 could fall to 25%.

At the June meeting, the government approved the draft “guidelines of budget policy for 2016 and the planning period of 2017-2018″. This document assumes that the retirement age can become single men and women, gradually rising to age 63.

Meanwhile, according to various surveys, about 80% of the Russian population strongly disapproves of the prospect of increasing the age of retirement.

The retirement age in Russia will increase after the presidential elections in 2018, says Kudrin 08.10.2015

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