Pensions to Decrease in 2022, says Russian Economist

Pensions to Decrease in 2022, says Russian Economist


Recently, a lot of heated discussions have arisen around the situation with Russian pensions as it is almost impossible to talk on this topic without emotions.

This issue became especially acute after 2018. At the moment, under the pretext of the new economic realities and concern for the welfare of the elderly, the Russian authorities lobbied with a scandal the decision to conduct a pension reform in the country which would imply an increase by 5 years in the age of retirement.

Trying to calm down the residents who were not happy with these perspectives, officials have repeatedly promised that the reform would improve the well-being of both existing and future pensioners. In addition, it would help finally unload the federal budget which was regularly used to fill the deficit of the Pension Fund’s budget.

More than two years have passed since the reform was adopted. However, Russian pensioners have seen no improvement in their well-being at all. The long-awaited "recovery" of the Pension Fund has not happened either. Its budget is still deficit and needs allocations from the state treasury. As a result, the retirement age is the only thing that has really changed. This is the reason why political and expert communities are increasingly calling the pension reform a scam voicing demands for its cancellation. Of course, the elderly can only dream of abolishing the increase in the retirement age as the government party and the federal center are deliberately ignoring the calls of the State Duma opposition to improve the situation.

Meanwhile, the life of Russian pensioners is likely get worse already next year. Chances are due to lack of money in the budget in 2022 people will be deprived of additional indexation of pensions. This statement was made by Russian economist Vitaly Kalugin. "In 2022, pensions of Russians might fall," URA.RU cites him.

In Kalugin’s opinion, the situation with the deficit in the Pension Fund and pension payments might continue to be aggravated in the future. According to his predictions, it is likely to sharply escalate after the elections to the State Duma in September 2021.

After the election campaign, says Kalugin, the authorities might stop looking for money to meet people’s expectations. All populist statements which are expected to be very active right before voting will be put aside at once. As a result, the usual system of accumulation of pension points is likely to be returned, he says.

In addition, even if the authorities manage to provide a certain increase in pension payments, chances are they still will not be able to cover inflation. "However, it is likely that no one will remember about this anymore because the elections to the State Duma will be completed," Kalugin said.

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