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Friday, October 21, 2016

Kudrin suggested to increase the retirement age to 63 years for both men and women

The Deputy head of the economic Council under the President Alexei Kudrin and Deputy Prime Minister Olga Golodets entered into a debate around the retirement age. Kudrin called to allow the retirement of only 63 years, and both men and women. Golodets in response questioned the stories about the lack of money in the Pension Fund, calling them a “myth”. According to her, while the retirement age will not change.

Former Deputy Prime Minister and Minister of Finance, now Deputy Chairman of the economic Council under the President of Russia, appointed to this position a few days ago, Finance Minister Alexei Kudrin suggested on Saturday step-by-step increase in the retirement age in the country for men and women.

“We have a number of pensioners is increasing, and the amount of money in retirement is not growing. So when I talk about raising the retirement age is in question, in particular, on the solution of several urgent problems in the Russian economy, including maintaining high or increasing pensions for those who became pensioners”, – quotes the ex-Minister TASS. Recall now the age of retirement for men is 60 years, for women – 55 years.

In the air the same transmission Kudrin objected to the current Deputy Prime Minister Olga Golodets. According to her, plans to raise the retirement age, the government yet, reports RIA “Novosti”. “Well, in the near future we do not plan to do,” she said. “In order to have a serious conversation about raising the retirement age, need to begin to move forward on implementation, including the may decrees and life expectancy”, – said the Golodets.

She questioned the stories about the lack of money in the Pension Fund. “The theme of Pension Fund deficits, of course, exaggerated. This is a myth, ” she said. For example, compared to 2012, the Pension Fund is balanced. 1.5 trillion roubles better balanced”.

Finally, one of the main conditions of development of the economy it considers not so much the savings on pensions, how much the stimulation of growth of wages. “Without the support of consumption today it is impossible to further the development of the economy. And the topic of salaries is not only the subject of execution of decrees of the President, it is a basic condition for the further economic development of Russia. When we withdraw money from wages, then, no matter how much we have produced in the absence of the end user, nothing happens,” she said, adding that the most challenging is the transition from an oil economy to a consumer economy.

Money is enough

It is known that last year the income of the budget of the Pension Fund of the Russian Federation amounted to 7.1 trillion rubles, which is 967,5 billion rubles more than in 2014. Federal budget funds transferred to the Fund in the form of interbudgetary transfers at 3.1 trillion roubles, including 1.9 trillion roubles (62,5%) – for the payment of pensions for state pensions funded from the Federal budget.

Through these funds, last year FIU was funded expenses in the amount of 7.7 trillion rubles ($1.48 trillion rubles above the level of 2014). Of them on the performance of public obligations of the state in the last year spent 7 trillion rubles. The expenses of the FIU associated with the formation of funds for the funded part of labour pensions, amounted to 546,4 billion roubles.

Meanwhile, recently discussed a new variant of the pension system, Finance Minister Anton Siluanov said that the new mechanism of voluntary pension savings into special accounts in banks or pension funds can start operating in the second half of next year, and nationals will be required to participate in the formation of pension savings.

As for Kudrin, he has long called for raising the retirement age. So, March 17 former Minister even lamented that Russia has missed the good moment for this. “Let me remind you that in 2010, the pension was increased by 50% within one year. This was so. Then was the moment to move to raise the retirement age. It would be perceived by society rather balanced”, – he noted. And added that “God tells us prices fell (oil), we did not expect that they will grow back. I believed that we had at the time to use it.”

Meanwhile, on may 11 the state Duma in the third final reading passed a bill to raise the retirement age for officials. The document comes into force on 1 January 2017. The Ministry of labor reported in March that the priority remains voluntary policy encouraging later retirement, but not universal increase in the retirement age.

On the “bottom”

In addition, the transfer involving Kudrin and the Minister discussed the question of when the economy will start from the “bottom”.

According to Kudrin, it will remain “at the bottom” until then, until the authorities begin a decisive structural reforms. “You can say that “bottom” is passed – likely, probably, we are somewhere close to this definition are. But, unfortunately, because the old model of the economy developed, new one is not formed, even after the “bottom”, we will stay on this “day”, – quotes its TASS. “It seems to me that our economy is now a specific determination is not enough. We delay important reforms. This will be the reason and postpone the start of economic growth” – believes Kudrin.

In the discussion intervened and ex-Minister of economic development of Russia, now head of Sberbank German Gref. According to him, the issue and state the nature of the economy lead to sad results. “We in the whole history with enviable persistence repeat the same steps. And now we hear: let’s try issue money”, which will not cause for some reason we have inflation, let’s state the economy because private business does not operate in the country, ” he said.

On the eve of President Vladimir Putin stated that the “bottom” of the crisis in the economy can be considered passed last year.

On Thursday, the Minister of economic development Alexei Ulyukayev said that the economy completely adapted to the sanctions regime, the negative macroeconomic effects from them now, no. 14 may, the Minister of Finance Anton Siluanov also said that the Russian economy has adapted to new conditions and to the end of the year is expected to reach positive growth. May 18, Bloomberg wrote that, according to Western analysts, the Russian economy currently experiencing the largest over the past 15 years change and the recession could end in the third quarter of this year.

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