Putin softens stance on pension reform after angry protests Putin softens stance on pension reform after angry protests

Putin softens stance on pension reform after angry protests
04 Sep 2018

Russian President Vladimir Putin has softened planned changes to the country’s pension age following angry protests and a slump in his approval rating.

The retirement age for women will now be increased from 55 to 60, rather than 63, although a five-year increase for men, to 65, will stay in place, according to the BBC. But unions have warned that many citizens will not live long enough to actually claim their pension: Russian men have a life expectancy of 66, while for women it is 77, according to the World Health Organisation.

The issue has seen support for Putin plummet to 64% from 80%, according to state pollster VTsIOM. But the President said the move to raise the retirement age had been delayed for years and risked generating inflation and increasing poverty. Postponing it further would threaten the stability and security of Russian society, Putin added.

Under the new plan, to be implemented from 2019, the retirement age for men will gradually rise from 60 to 65. Before Putin's intervention, women would have had to work for another eight years from 55 to 63, but their planned retirement age has now been cut to 60.

Putin said that Russia "cherished women", adding: "Women not only work but they also take care of the house and children and grandchildren. Their retirement age should not increase by more than that of men." Women with three or more children could retire earlier, he said.

Putin has just signed a new Bill on pension spending, envisaging a deficit of more than 265 billion roubles (US$4.2billion) in 2018, the equivalent of 1.6% of all state budget expenditure, which is not sustainable into the long-term, especially during tough economic times.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Minding your manners in Europe

Russia denies media claims of major tax reform

Car firms welcome new zero payroll tax in Kalingrad

 

 

Russian President Vladimir Putin has softened planned changes to the country’s pension age following angry protests and a slump in his approval rating.

The retirement age for women will now be increased from 55 to 60, rather than 63, although a five-year increase for men, to 65, will stay in place, according to the BBC. But unions have warned that many citizens will not live long enough to actually claim their pension: Russian men have a life expectancy of 66, while for women it is 77, according to the World Health Organisation.

The issue has seen support for Putin plummet to 64% from 80%, according to state pollster VTsIOM. But the President said the move to raise the retirement age had been delayed for years and risked generating inflation and increasing poverty. Postponing it further would threaten the stability and security of Russian society, Putin added.

Under the new plan, to be implemented from 2019, the retirement age for men will gradually rise from 60 to 65. Before Putin's intervention, women would have had to work for another eight years from 55 to 63, but their planned retirement age has now been cut to 60.

Putin said that Russia "cherished women", adding: "Women not only work but they also take care of the house and children and grandchildren. Their retirement age should not increase by more than that of men." Women with three or more children could retire earlier, he said.

Putin has just signed a new Bill on pension spending, envisaging a deficit of more than 265 billion roubles (US$4.2billion) in 2018, the equivalent of 1.6% of all state budget expenditure, which is not sustainable into the long-term, especially during tough economic times.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Minding your manners in Europe

Russia denies media claims of major tax reform

Car firms welcome new zero payroll tax in Kalingrad

 

 

Leave a Reply

All blog comments are checked prior to publishing