The State Duma, the Russian parliament’s lower house, adopted in the third and final reading the draft law On the expected period of paying the funded pension for 2019. It is publicly available on the Parliament website.
The expected payment period is based on the average life expectancy after retirement. The document establishes this period at 252 months, assuming that the life expectancy has improved. While in 2016, this figure was 234 months, in 2017 it rose to 240 months, and in 2018, to 246 months. At the same time, the expected payment period is inversely proportional to the size of the pension.
For example, if a person has pension savings of RUR 1 mio ($14,840) when they retire in 2017, their funded pension amounts to RUR 1 mio /240– RUR 4,166 ($61.84) a month, according to tax expert, head of the Simplified Tax portal, Nikolai Yepikhin. If they retire this year, their monthly funded pension will be RUR 1 mio / 246 – RUR 4065rubles ($60.34). If they retire next year, it will be only RUR 3968rubles ($58.9) per month.
“Thus, an important part of the pensioners’ total monthly benefits will be gradually reduced, so the lawmakers have saved a decent amount for the federal budget,” the expert noted.