Russians’ pensions are ten times lower than in Western Europe. Even the Baltic states have outrun Russia in terms of retirement pensions, said Konstantin Andrianov, lead research fellow at the Institute of Economic Policy and Economic Security at the Financial University under the Government of the Russian Federation, during a roundtable meeting on non-government pension plans on July 24 at the State Duma.
“Russia’s pension system is one of the most pressing and glaring problems. As of 2018, there were 46 mio pensioners in the country. More often than not, their pensions are under RUR 10K ($158), which is very small money. Therefore, it would be fair to say that retirement pensions are no longer fulfilling their main function which is to provide social protection to citizens who can no longer earn their living,” Konstantin Andrianov noted.
He added that Russian pensions are eight to ten times lower than pensions in Western Europe, three times lower than pensions in Eastern Europe and 50% lower than pensions in the Baltic states.
“This data indicates that the majority of Russians are living below the poverty level,” the expert stressed.
He added that low pensions are a result of low wages.