Increasing the retirement age in 2021: latest news, table

The retirement age in Russia will increase in 2021. The new law on raising the retirement age in Russia from 2021 has already been adopted. The Russian government proposes to start retiring men from 65 years old and women from 63 years old in a year.

The pill was sweetened by the intention to carry out the reform smoothly, as well as the promise of increased pensions and a declarative statement about the inadmissibility of discrimination against workers based on age.

Latest news about raising the retirement age in 2018

The retirement age will be increased for men to 65 years and to 63 years for women. Dmitry Medvedev stated this after a government meeting on June 14. He noted that the authorities will raise the retirement age gradually.

“It is proposed to introduce a fairly long transition period - it is proposed to start in 2021 in order to step by step achieve retirement at 65 years for men in 2028 and at 63 years for women in 2034,” the prime minister said during a government meeting.

The Prime Minister also noted that as a result of the increase, it will be possible to index the pension annually by an average of 1,000 rubles, versus 400-500 rubles, as is done now.

There is also a retirement benefit for citizens with extensive experience (for women over 40 years old and for men over 45 years old) - they will be able to retire 2 years earlier.

Based on government materials, women born in 1964. and men born in 1959 will receive the right to retire in 2021 at the ages of 56 and 61, respectively. It turns out that those men who are 59 years old in 2018 will have to work for another 2 years, and not 5 full years, according to the reform.

In 2022, men born in 1960 and women born in 1965 will be able to retire. Further, the “increase step” of retirement will remain.

Men born in 1961 and women born in 1966 retire in 2024, men born in 1962 and women born in 1967 - in 2026, men born in 1963 and women born in 1968 - in 2028, at the ages of 65 and 60 years, respectively.

Pros and cons of increasing the retirement age

An increase in the retirement age is inevitable; the question remains when the reform will begin and according to what model. But we can already note what each party will receive as a result of raising the retirement age.

Pros:

1. Due to cost savings as a result of the reform, the pension size could increase to 30 %.
2. The growth of incomes of the older population stimulates the development of the country's economy as a whole.
3. By creating jobs for older people, the ratio of working citizens to retirees will increase, which is a good indicator in a society with an aging population.
4. By increasing the number of able-bodied employed citizens, it is possible to reduce the tax burden of contributions to the Pension Fund.
5. Establishing social justice between men and women.
6. Raising the retirement age in 2018 will reduce the number of pensioners, which will allow maintaining all existing benefits.

Negative points:

1. At current life expectancy, the time to reach retirement age is shortening.
2. The real conditions of the labor market do not allow older people to find decently paid work.
3. Potential threat of the return of “gray” wage payment schemes.
4. Dissatisfaction on the part of the population approaching retirement age due to violated expectations.

How the retirement age has changed

For many, the increase in women's age next year is good news, since most of their time will not be taken up by work. They can devote enough time to their family. This opinion is shared by many men.

But the pension system still has certain problems, since the number of disabled citizens is much smaller than the working ones. At the same time, the number of citizens of retirement age is becoming larger and larger, and this contributes to the development of a serious deficit in the budget of the Pension Fund.

This problem was not of much concern to the government until recently. Then the budget was “never-ending” and was regularly filled with the help of the high cost of oil. Over the past 3 years, the situation has taken a different turn of events, and at the moment the authorities must resolve the pension issue radically.

According to most expert analysts, only by raising the retirement age will the state budget be able to unload a little without the danger of increasing inflation. The likelihood of this innovation being introduced is very high.

Pensions: Putin missed the mark, but the Kremlin won’t admit it

The Russian government did not support the Russian senator's bill to lower the age for receiving an old-age insurance pension.

Let us recall that earlier a member of the Federation Council Committee on the Budget and Financial Markets, a representative of the legislative (representative) body of state power of the Oryol region, a member of the Central Committee of the Communist Party of the Russian Federation Vasily Ikonnikov proposed reducing the age for receiving an old-age insurance pension from 65 years to 61 years for men and from 60 to 56 years for women. In addition, he advocated reducing the length of service for early retirement - from 42 to 38 years and from 37 to 33 years, respectively, as well as reducing the age requirements for receiving a social old-age pension - from 70 to 66 years and from 65 years to 61 years respectively.

From a purely human point of view, this initiative looks quite sensible - they say the officials played around with the retirement age, and that’s enough. Like, even if the vertical power structure actually admitted that raising the retirement age did not produce the economic effect that was expected, then let’s stop now and not bring the “cannibalistic” experiment to the end.

However, the Russian Government Commission on Legislative Activities did not listen to the initiative of the representative of the Communist Party of the Russian Federation and issued a verdict: the Cabinet of Ministers does not support the innovation.

Who will be affected by the increase in retirement age?

The working age will increase not only for citizens applying for an old-age insurance pension. The age for assigning a social pension to disabled citizens will also change. Citizens who do not have sufficient work experience to receive an insurance pension will retire not at 60 years (for women) and at 65 years (for men), as is currently provided, but at 68 and 70 years, respectively. However, the social disability pension will continue to be awarded regardless of age.

The retirement age will also be raised for the following categories of workers retiring early:

1. For workers working in the Far North and areas equivalent to such areas. For this category of citizens, the retirement age will also increase by 8 years for women and 5 years for men. After the transition period, workers in the North will retire not at 50 and 55 years old, but at 58 and 60 years old, respectively.
2. For citizens working in the teaching, medical and creative fields, the age for early retirement will be increased by 8 years. The new retirement age will be determined based on the date of completion of the required length of service:

• in 2021, these categories of workers need to develop work experience for a period of 15 to 30 years - this preferential length of service remains unchanged under the new law;
• The age at which the length of service required to assign an old-age insurance pension will be completed is fixed, however, to retire after completing the length of service, another 8 years must pass (starting from 2026) or less if a citizen applies during the transition period (for this category persons, the year of retirement can be seen in the table below).

How will the retirement age be gradually raised?

This process began in the first half of 2021 and will take 10 years - the last stage will be in 2028, when men will retire at 65 and women at 60.

Deposit "Honey" Asian-Pacific Bank, Person. No. 1810

up to 6.24%

per annum

from 10 thousand

up to 500 days

Make a contribution

The first generation of Russians who will be affected by the age increase are men who were born in 1959-1960, and women who were born in 1964-1965.
A special benefit was provided for them - the opportunity to retire six months earlier than the standard period. That is, people who were supposed to retire at the beginning of 2020 could do so in the second half of 2021. Gradual increase in retirement age

Those who have not worked enough and do not have the length of service to qualify for a standard pension will not be able to receive it. For them, the term is increased by 5 years.

Why did the question of raising the retirement age in Russia arise?

Independent economists actively spoke about the need to increase the retirement age in the country back in 2015-2016. Then, after the start of the crisis in the country’s economy in 2013-2014, which peaked at the end of 2014, the state had to remember what it was like to create a deficit budget.

We had to save on everything, including social expenses. 2021 has been especially difficult for pensioners. It was then, for example, that pensions for working pensioners were frozen, which have not been unfrozen to this day. For the first time in 2021, non-working pensioners did not receive full indexation of their pensions - there was simply no money in the treasury for it.

In addition to the general difficulties in the economy, which, in general, are surmountable, economists drew attention to another alarming fact. The ratio of young and old people in Russia is increasing in favor of older people. A situation is emerging where the number of pensioners will first equal and then exceed the number of working Russians. And this moment for the economy is quite difficult and critical.

The most active advocate for the need to raise the retirement age in Russia was former Finance Minister Alexei Kudrin. Considering that, having lost his position, one of the largest financiers of our country did not lose his friendly relations at the very tops of power in the country, it is likely that with his help even then the reaction of people to such an idea was tested.

Be that as it may, after the elections the time has come for unpopular decisions. The government began to talk about raising the retirement age as a given. Only its format and timing are discussed.

Pension reform 2021 in Russia: features

— Raising the retirement age will begin on January 1, 2021. — The transition period will be long and gradual. — Men born in 1959 will be the first to feel the increase. and women born in 1964 — Raising the retirement age will not affect Russians who are already retired. — All their social payments will be preserved in full. — The reform will be completed by increasing the retirement age for men in 2028, for women in 2034.

Table of increasing the retirement age in Russia for women

Table of increasing retirement age for men

Table of increasing retirement age by year of birth

The final changes to the retirement age should increase this period:

• in women under 63 years of age;
• in men under 65 years of age.

All women who were born in 1964 and later will notice these changes in themselves. Raising the retirement age will also affect men born in 1959 and later.

One of the options for changing the retirement age (project)

The retirement table from 2021 by year of birth for men and women during the transition period is presented below:

Raising the retirement age in 2021

Today, many countries are raising the retirement age of the population, and now this issue is being discussed very emotionally by the government. The issue is also discussed at the level of experts, whose opinion is almost the same: it will not be possible to do without an increase, but this problem also needs to be treated with special caution and accuracy.

The decision has not yet been made, but, most likely, this is inevitable, since the consequences of ignoring the issue will not be comforting: the number of citizens who continue to work and the amount of pensions will decrease rapidly. Every citizen of Russia should clearly understand this.

Currently, women can retire at age 55, and men at age 60. In May of this year, it became known that the state plans to raise the retirement age from 2021. Completion will occur in 2024. As a result, men will retire at 65 years old, and women at 62 years old.

With the help of this innovation, the size of pension payments will increase by 30%, but this will take at least 5-7 years. The ratio of pensions to wages will not be higher than 34%, and will remain practically at the same level.

As for men, their level will not rise as much, since their life expectancy on average is not as long as that of women. Therefore, it will not be possible to carry out work activities for quite a long time.

When and how will the retirement age begin to change?

Raising the retirement age in Russia has been talked about for a long time, but government structures did not raise this issue on the eve of the elections. It is clear that these measures are not popular and are fraught with complications and indignation of the people. Now that the tension has subsided, intentions have been voiced to gradually increase the retirement period.

On June 14, 2021, the government presented a draft law on a gradual increase in pensions. It is planned to come into force on January 1, 2021. The draft law was proposed by the Cabinet of Ministers and has not yet been considered in the Duma. Therefore, quite complex debates lie ahead, which will end with no one knows how.

It is planned to implement the changes not immediately, but to extend the increase in the retirement age by 10 years or even 15 years. The government understands that sudden changes will cause a negative reaction from the population.