August 26, 2011

RUSSIA: Russia to Increase Retirement Age to 65

OSWEGO, Illinois / Retirement Planning Magazine / Retirement News / August 25, 2011

By Hubert Ian Wright

According to Sergei Shatalov, who is the deputy finance minister of Russia, they will raise the retirement age gradually until it reaches 65 years old. Increasing the retirement age has been a common option in Russia and was heavily discussed over the past few years starting ten years ago. Compared to the retirement age of other countries in Europe, Russia’s retirement age is among the lowest, with men given the right to retire by age 60 and women at the age of 55.

Shatalov mentioned in an interview last Tuesday with Echo Moskvy, that all kinds of employees in Russia, whether cosmonauts or pilots, lumberjacks or miners, among many others, will have to deal with a new age for retirement. Furthermore, he stated that this process will be a gradual, step by step process, which starts by adding perhaps half a year increase in retirement per year, or even a third of a year, so that in fifteen years the retirement age in Russia will already be 65 years old.

It is made gradual because this process is quite difficult and those involved should be able to enter the right frame of mind to accept this change. The motivation for this change is to help Russia deal with the increasing budget deficit found in the pension fund in the country, which is being dealt by two percent of its GDP. Increasing retirement age will help lower this figure and give a thirty percent increase in the average monthly pension. The average life expectancy of men in Russia, on the other hand, is just 63 years old.

Source: Retirement Planning
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