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Russia to spend $47.2 bln on pension hikes over six years

The government’s bill on changes into the Russia pension system has passed its first reading in the State Duma this Thursday

© Kirill Kukhmar/TASS

MOSCOW, July 19. /TASS/. The amount to be allocated over six years to pension hikes for non-employed pensioners in Russia will total 3 trillion rubles ($47.2 bln), Labor Minister Maxim Topilin said on Thursday.

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"All the sources I have highlighted, all of them are allocated for upward adjustment of pensions. Three trillion rubles ($47.2 bln) over six years," the minister said.

The government’s bill on changes into the Russia pension system has passed its first reading in the State Duma (lower house) this Thursday.

The draft bill on changes to the national pension system submitted by the government to the State Duma, stipulate a gradual increase in the retirement age to 65 for men (by 2028) and 63 for women (by 2034). Currently, the retirement age for men and women is 60 and 55 years, respectively.

The authorities plan to raise the retirement age gradually starting from 2019. The hike in the retirement age does not affect current pensioners (about 46.5 mln people.) They will continue to receive their pensions and social benefits that were earmarked for them earlier. According to Prime Minister Dmitry Medvedev’s forecast, thanks to the implementation of the retirement reform, pensions will grow by about 1,000 rubles ($16) annually.

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