Russia to save on pensioners

Russia to save on pensioners

According to the Russian Ministry of Economic Development, pensions will be reducing in Russia during the next three years. First of all, this will affect payments to more than 10 million working pensioners, whose pensions are not indexed, the Vedomosti newspaper reports.

The basic scenario of the Ministry of Economic Development, on the basis of which the budget is prepared, pensions will be reduced by 0.7% in 2018 and by 0.6% in 2019-2020. They will be reduced, because they are not indexed for working pensioners. The inflation will also play its negative role,  as it is projected at 4% against the current 3.7%, and pensions are indexed on the previous year's inflation, RBK reports.

According to the Pension Fund of the Russian Federation, about one third of 43 million pensioners in Russia are working pensioners, but the draft budget for 2018-2020 does not provide indexation of their pensions, thus, less than 1% is deducted from the real growth of pensions.

The total real income of working pensioners will grow by 1.8% in 2018 and by 0.1 and 0.3% in the next two years not taking into account the stepwise cumulative indexation, when a person stops working and retires, Vedomosti reports.

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