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Ruble gains ground against dollar and euro after Putin’s address

The president said the draft bill on the pension reform suggests increasing the retirement age for women by eight years and for men by five years

© Dmitriy Rogulin/TASS

MOSCOW, August 29. /TASS/. The ruble began growing against dollar and euro after the address of Russian President Vladimir Putin to Russian citizens over the government's proposed changes to the pension legislation.

In particular, the dollar declined by 20 kopecks to 67.67 rubles, the euro - by 40 kopecks to 78.95 rubles.

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Putin suggests raising retirement age to 60 for women, 65 for men

Russian President Vladimir Putin said in his address that the proposed changes to the pension system will make it possible to both maintain the income level of senior citizens and ensure its stable growth.

"The suggested changes to the pension system will make it possible not just to preserve the level of pensioners’ incomes, but, what is crucial, to ensure a growth rate higher than the inflation rate. The adjustment for inflation on retirement benefits will stand at about 7% in 2019 already, which is twice as much as the inflation predicted for the end of 2018. Overall, we will be able to increase the old age pension for retirees by an average of 1,000 rubles [$14.8] in the coming six years," Putin said.

This measure will help bring pensions for retirees to a level of 20,000 rubles ($296.8) per month by 2024. Right now, that amount comes to 14,144 rubles ($209.9).

"Going forward beyond 2024, the changes in the pension system will make it possible to lay solid groundwork for the stable annual growth of pension coverage above inflation," the president added.

The president said the draft bill on the pension reform suggests increasing the retirement age for women by eight years and for men by five years. "That wouldn’t do, certainly. This is wrong," Putin said.

"The retirement age for women should not outpace that of men. That’s why I believe it is necessary to reduce the increase in the retirement age for women proposed by the legislation from 8 to 5 years," Putin said, noting, "Our country’s attitude towards women is unique and compassionate." "We understand that not only do they work, but usually, they are the backbone of the entire home, caring for the family, educating the children and taking care of the grandchildren."

The draft bill on changes to the national pension system submitted by the government to the State Duma, the lower house of parliament, stipulates a gradual increase in the retirement age to 65 for men (by 2028) and 63 for women (by 2034).

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