What is the essence of the pension reform proposed in 2021?
On June 14, the Russian government formed a scheme for increasing the retirement age in Russia and on June 16, the bill was submitted to the State Duma. The essence of the reform is that the retirement age in our country will increase by 5 years for men and by 8 years for women. Under this scheme, men will retire at 65 years old, women - at 63 years old.
The increase will be gradual, but it will begin next year. It will take 10 years to raise the retirement age for men; for women, the transition period will be 16 years.
Those people of pre-retirement age who planned to retire in 2021 will only be able to do so in 2020.
The pension reform proposed in June 2021 in Russia raises many questions. This project mainly suffers from the fact that the government is proposing a purely accounting step that will save budget money. It is said that raising the retirement age will make pensions higher. But the Cabinet began to think about how to neutralize the negative social consequences only after independent experts pointed out these consequences. There is a feeling that its authors simply did not think about the negative aspects of the pension reform.
One of the main problems is that even with the current retirement age, it is very difficult for older people to find work. Employers are much more willing to hire younger workers, so if a person over 50 needs to change jobs, finding a new job can be difficult, and the work rarely pays well.
This problem is the most obvious. There are plenty of others, including the still low life expectancy of Russians. Many simply will not live to see retirement.
Photo: government.ru
Pension reform in Russia 2021, latest news for today, 09.23.2018
The attitude towards raising the retirement age is not entirely positive, because when they talk about raising the age from the point of view of economic feasibility, taking into account all demographic factors, it is not a comprehensive solution that includes a whole range of aspects related to the complex situation in the Russian economy, this is one-sided and skewed, the rector of the Murmansk State Technical University, professor, doctor of economic sciences Sergei Agarkov a REGNUM .
In his opinion, in this case, people have a feeling of social injustice, that once again economic issues are being resolved at the expense of the people. The same problem also applies to the differentiated taxation scale for the wage fund, that is, those aspects that generally affect economic issues in order to make the economy competitive - this includes labor productivity, which in Russia lags many times behind that of economically developed countries, which put Russian citizens for example, this is the problem of survival in comparison with developed countries, etc.
“Therefore, if the proposal of the Russian government is a comprehensive program, then it should be presented as a comprehensive program for the development of the pension system, and not as a solution isolated from all others, called raising the retirement age. In essence, this is simply taken out of the context of the problems that currently exist in the country. Transformations in the Russian pension system require a lot of discussion; it is being conducted in society. I think that the last word will be with Russian President Vladimir Putin , and some kind of compromise will be found,” Agarkov expressed his opinion.
How State Duma deputies voted for pension reform
On July 19, 2021, State Duma deputies considered the draft pension reform in the first reading. The draft law was adopted exclusively by the votes of members of the United Russia party.
328 Duma deputies voted for the reform. These are all the United Russia deputies present in the hall with the exception of Natalya Poklonskaya. The deputy from Crimea is the only one who openly went against the general line of the faction. Several more deputies from United Russia were not present in the hall.
104 people voted against. These are all deputies from the parties of the Communist Party of the Russian Federation, Liberal Democratic Party and A Just Russia who were in the Duma during the meeting.
The pension reform became the first bill in a long time that so divided parliamentary factions.
Political scientists have long been accustomed to consider opposition parliamentary parties to be only conditionally oppositional. The leaders of the Communist Party of the Russian Federation, the Liberal Democratic Party and the Socialist Republic have been “tamed” by the presidential administration for a long time. Parties usually vote on all key laws for the Kremlin in the way that the current government needs. Their opposition is in most cases the appearance of choice and difference of opinions.
However, according to the pension reform project, United Russia members found themselves alone. Which, of course, did not stop them from passing the bill in the first reading solely on their own.
The majority of United Russia in the Duma, we recall, was formed as a result of the 2021 elections. Dissatisfied with plans to raise the retirement age today, Russians themselves recently elected all those deputies who voted for the reform.
Photo: government.ru
Pension reform in Russia 2021, latest news for today
The State Duma in the first reading adopted a government bill on raising the retirement age for men to 65 years, and for women to 63 years. The second and third readings will be in the fall. But it is unlikely that anything will change radically. Perhaps some parliamentary parties who voted against will join the majority of United Russia. It’s time to come to terms with the fact that from January 1, 2021, the pension reform will collapse on the country’s population. To make this blow less painful, the reform will be introduced gradually. The government carefully comments on this initiative, with the caveats that there is no other way. President Vladimir Putin generally stated that he does not like any of the options related to raising the retirement age.
The Government of the Russian Federation decided to carry out pension reforms in the country and chose one of the options for this reform.
The choice was made in favor of the option of the Ministry of Finance, which states that the retirement age for men by 2028 will be 65 years, and for women - 63 years and later, by 2034.
How the Communist Party of the Russian Federation prepared a referendum against pension reform and what came of it
The Communist Party of the Russian Federation decided to prepare the first all-Russian referendum in the last 25 years. Its topic was to be the upcoming pension reform.
The Communist Party of the Russian Federation carried out all the necessary organizational actions to initiate the referendum and presented its draft to the Central Election Commission. The CEC rejected the referendum project.
It was immediately clear that the referendum would be rejected. The only curious thing was under what pretexts this would be done.
As a result, the CEC did not like the wording of the question. The Communist Party of the Russian Federation formulated the question for the referendum as follows: “Do you agree that the age giving the right to receive an old-age insurance pension should not be raised?”
What the Central Election Commission responded to this:
- Russians do not know what retirement age exists in Russia today; this requires special knowledge,
- Russians do not know what an insurance pension is and how it differs from other types of pensions, only lawyers can understand this,
- It is not clear what the retirement age will be at the time of the referendum - what if the law has already been adopted.
At the same time, the Central Election Commission graciously allowed the Communist Party of the Russian Federation to clarify the question for the referendum and apply again. The election commission even promised to provide consultations on the wording of the referendum.
The communists still have one more strong argument in reserve. Instead of a referendum, they can start collecting signatures against the 2021 pension reform.
We recently talked about an online petition against raising the retirement age in Russia. Currently, the number of signatories of the petition is close to 3 million people. If the Communist Party of the Russian Federation collects a similar number of “living” signatures from Russians and submits them to the president, this will be a significant political step against the reform.
Photo: kremlin.ru
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Pension expert and economist Sergei Kikevich said that in order to secure a pension of 90 thousand rubles, you need to save 5 thousand rubles monthly.
He suggests starting with investing in a simple package consisting of bonds, stock index funds and gold. The expert explained to Reedus that according to statistics from previous years, in this way it is possible to achieve a return of 15% per annum on deposits.
“Accumulating retirement savings is usually a long-term task. For a pension of 90 thousand rubles, you will need to save about 7.5 million rubles. At the same time, the amount with which a person starts investing does not matter. With zero starting investments and 5 thousand rubles of monthly top-ups in 20 years, it is quite possible to achieve this pension size,” said Kikevich.
He added that, subject to a monthly payment of 5 thousand rubles, with the help of investments, in 10 years you can accumulate a pension of 17 thousand rubles, in 15 years - a pension of 42 thousand rubles, in 20 years - 93 thousand rubles, in 25 years - 202 thousand rubles. At the same time, he noted that in 20 years the amount of 90 thousand rubles will have less purchasing power than now.
“What is investment? This is a method to solve long-term financial problems. Often by investment we mean God knows what! All trading, speculation, gambling casinos are not investments,” the expert said and added that a beginner needs no more than a week to understand investing.
But before a person can start investing and solving long-term financial problems, he needs to meet two conditions, namely, close loans and create a financial safety net, the expert noted.
“The main thing is that a person does not have loans, because in investments, the only mechanism that moves us towards the goal is called an asset - something that allows you to receive income. The same bank deposit. We work as a doctor or teacher, and in the meantime, a bank deposit brings us some kind of additional income - an example of assets. In order to create assets, a person needs to get rid of liabilities. One, two, three loans are exactly what will interfere in every possible way with achieving financial goals,” commented Kikevich.
According to the expert, “a modern loan is 20%, 30% per annum, sometimes even more. Therefore, there is no point in investing money at 10%, accumulating it, and at the same time paying the bank a loan at 30% - this is utopia.”
Then, according to Kikevich, it is necessary to prepare a financial airbag that will not be used in investing, but will give a feeling of protection and peace of mind from external risks. Its size should be equal to 6-8 monthly expenses of a person or his family. This money is to ensure financial security in case of any force majeure situations.
“Many people think that you need start-up capital right away, but I’ll say right away - no, this is not an important necessity. Time is our main ally, because in investments the so-called rule of compound interest applies: the more years we have ahead of us, the higher the likelihood that we will accumulate a significant amount of money that will meet our retirement expectations,” Kikevich concluded.
Earlier, the Federation Council named a way for the self-employed to receive a pension.
