Russian president vladimir putin softens pension reforms after outcry
A timely topic!
Yes, you're correct. Russian President Vladimir Putin has announced a series of changes to the country's pension reform plan, which had sparked widespread protests and criticism from many Russians.
In December 2018, Putin signed a law increasing the retirement age for men from 60 to 65 and for women from 55 to 63. The reforms were aimed at addressing Russia's pension crisis, which is caused by a rapidly aging population and a low birth rate. However, the changes were met with fierce opposition from many Russians, who felt that the increases were too drastic and would disproportionately affect low-income and working-class individuals.
In response to the backlash, Putin announced a series of concessions on March 26, 2019. The changes include:
- Delaying the implementation of the pension reforms: The new retirement ages will not come into effect until 2028, instead of 2023 as previously planned.
- Increasing the pension benefits: The government will increase the minimum pension for those who retire at the age of 65 to 18,500 rubles (approximately $280 USD) per month, up from 13,000 rubles (approximately $200 USD) per month.
- Introducing a new pension formula: The government will introduce a new formula for calculating pensions, which will take into account the average salary of an individual during their working life, rather than just their final salary.
- Increasing the minimum pension for those who retire at 60: The government will increase the minimum pension for those who retire at the age of 60 to 14,000 rubles (approximately $220 USD) per month, up from 10,000 rubles (approximately $160 USD) per month.
While these changes may help to alleviate some of the concerns of Russians who are affected by the pension reforms, many still feel that the government has not done enough to address the underlying issues with the pension system.