Russians will see a rise in pensions

Russia is planning another rise in old-age pensions, as is envisaged by the Pension Fund’s draft budget, Rossiyskaya Gazeta reports.

Next year, average retirement benefits can grow by more than 6% and close to the level of RUR 17.5K ($253). In 2022, they will be indexed by another 6%, to over RUR 18K ($260), and by 5.6% in 2023 to RUR 19.2 ($277.5).

This indexation should be higher than the expected level of general inflation. As we know, during the discussion about raising the retirement age, officials promised that this reform would also increase pensions by an average of RUR 1K ($14.5) a year. This estimate holds true for an average pension of about RUR 16K-17K.

The social (minimum) pensions will also be increased: next year, they will grow 1.5% to RUR 10K ($144.5). The contributory part and additional payments based on credited contributions will not be adjusted at this stage, according to the Pension Fund documents.

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