Topilin called the size of the average Russian pension in 2019

© RIA Novosti / Evgeny to Betemporary in fotomancer of labour and social protection of Russia Maxim Topilin. Archival photoTopilin called the size of the average Russian pension in 2019© RIA Novosti / Evgeny to Betemporary the image Bank

The average pension in 2019 can grow up to 15.4 thousand rubles in case of changes in the pension legislation, said Minister of labor and social protection of Russia Maxim Topilin.

«By the end of the year, the monthly average pension will amount to 14 rubles 414. The increase of 1 thousand rubles means that next year the average pension will be more than 15 thousand 400 rubles. This average increase», — he told in interview to the newspaper «Izvestia».

Topilin said that one thousand rubles — this increase in the annual average taking into account indexation in February and April. «Pensioners will receive on average 12 thousand roubles more. Someone has a pension any more, someone less, because the size of pensions is in each person. I assume the average pensions, which we have developed», — he explained.

Earlier, Prime Minister Dmitry Medvedev said that the government proposes to raise the age of retirement to 65 years for men and 63 years for women. The reform will be phased and will start in 2019. The government has submitted relevant bills to the state Duma after consideration at a meeting of the Russian tripartite Commission (RTC) for regulating social-labour relations.

The bill of the Cabinet noted that this initiative will create the conditions for annual indexation of pensions above the rate of inflation in balance and long-term financial sustainability of the pension system of the Russian Federation as a whole. First Deputy Prime Minister — Finance Minister Anton Siluanov at the meeting of the tripartite Commission stated that the changes in pension legislation and taxation should provide a new quality of economic growth and enhance the quality of life of citizens. According to him, the pension bill aims to increase the real pension in the country. All funds received through its implementation, will go to social sector, special emphasis will be placed on health.

According to the head of Sberbank German Gref, the proposed changes will contribute to pensions to a decent level. According to the head of the accounts chamber of the Russian Federation Alexey Kudrin, the increase in the retirement age would yield savings to the budget of the Russian Federation in 2024 1 trillion rubles a year, a significant portion of these funds, the authorities will direct on increase of pensions. President of the Association of pension funds (ANPF) Sergei Belyakov said that the decision to raise the retirement age overdue, this is required fundamentally changing demographic trends and age structure of the population in the Russian Federation.

The question of raising the retirement age has been discussed for quite some time. The need for this is caused by growing life expectancy and the inability to provide a decent pension in circumstances when the number of employees in the country decreases, while the number of pensioners, by contrast, is growing. Today, in most countries the retirement age is 60-65 years.