April 3-4 2018
Russian Academy of Sciences (RAS). Key theme: "Russia and the world: image of the future".
Raising the retirement age in Russia: problems and solutions

Published: February 16th, 2017

1. The name of the Round table

Raising the retirement age in Russia: problems and solutions

2.The moderators of the Round table

Grinberg Ruslan Semenovich, Scientific Director of the Institute of Economics RAS, corresponding member of RAS

Soloviev Arkady Konstantinovich, head of Department of actuarial calculations and strategic planning of the RPF, doctor of Economics, Professor of Financial University under the Government of the Russian Federation, Honored economist of Russia

3. A brief announcement of the Round table

In the framework of the Round table the problem of raising the retirement age, and related macroeconomic and social risks are proposed to discuss.

The problem of raising the retirement age rises for many years and has been widely discussed by the General public and the expert community. One of the factors that the experts often call as the basis for raising the retirement age is the increase in life expectancy. However, this occurs primarily by reducing mortality in other categories of the population of Russia, in particular, by reducing child mortality.

To talk about the lack of funds to finance the payment of pensions as a factor of the necessity of raising the retirement age is also wrong. In Russia the pension insurance system was systematically lined up for decades, in which a man himself forms his pension, paying pension insurance contributions. Pension rights should not depend on external factors and risks that must be managed and offset by the state, and the pension should become a revenue generating factor.

However, by the end of the 30-ies of the century the increase in the retirement age will be inevitable. And the task of the state is to do it gradually, without jerks and at the same time creating new jobs for young specialists and the relevant conditions in the labor market.

Topics for discussion and elaboration of solutions:

Retirement age and economic rights of insured people

Influence of retirement age on the labor market

The retirement age in the insurance model of pension provision

The social consequences of raising the retirement age

Retirement age and the state budget

Retirement age and the burden on business

Retirement age and international standards for social protection of the population

The outcome of the Round table will be the project of the decision of the Round table, containing the following conclusions and suggestions:

1. Despite the trend of population ageing, the values of the key demographic indicators that directly affect the functioning of the pension system prevailing today and for the coming decade, do not give grounds for raising the retirement age.

2. The main limitation to ensure decent pensions are not low retirement age but low wages and extremely high differentiation of workers according to its level. Only at a salary equal or above the average in the economy, people can earn a pension of 1.0 PMP for 16.4 years, for 2.0 PMP - must work 33 years, and for 3.0 PMP - 49 years. Employees with a lower salary will not even be able to form a decent pension for a reasonable length of employment. Until the issue of wage increases is not resolved, any parametric changes within the pension system will not bring any economic or social effect

3. In a truly insurance system under the current and projected life expectancy, the retirement age in setting premiums at the level of 25-26% (even when it is full consideration of pension rights) it is reasonable to increase the retirement age up to 62-63 years but not more to the mid-2040s years.

4. The problem of budget transfer economy and long-term financial stability of insurance pension system can not be solved by to solve raising the retirement age.

5. To improve the quality of life for current and future retirees it`s necessary to focus on the imperfection of the current pension system, but primarily on the macroeconomic and demographic problems and their solution (the creation of conditions for the formation of pension rights of future pensioners, the clearing in the labor market, higher wages, lower risk of youth unemployment, elimination of illegal employment).