The Central Bank assessed the impact of changes in pension legislation on GDP

© RIA Novosti / Natalia to Seliverstova in photobacteria the Central Bank of the Russian Federation. Archival photoThe Central Bank assessed the impact of changes in pension legislation on GDP© RIA Novosti / Natalia to Seliverstova the image Bank

Raising the retirement age, according to the Bank of Russia will contribute to the enhancement of the growth rate of gross domestic product at around 0.1 percentage point in 2019 and 0.2–0.3 percentage points in 2020-2021 years, says the report of the financial regulator on monetary policy.

«Raising the retirement age, according to the Bank of Russia will further contribute to raising the growth rate of GDP of around 0.1 percentage points in 2019 and 0.2–0.3 percentage points in 2020-2021 years», — said in the document.

The Central Bank stressed that changes to pension legislation will lead to additional expansion of employment in the economy every year and, thus, increase the rate of GDP growth, ceteris paribus.

In addition, the financial regulator noted that the change in retirement age will smooth preinflation possible risks that the trend in wages. According to the Bank of Russia, it will have a positive impact on the problem of skills shortages.

The state Duma in July passed in the first reading the bill involves a gradual increase in age of retirement to 65 years for men and 63 years for women. However, the President of Russia Vladimir Putin proposed a number of measures in order for this solution to soften what he said in his televised address to Russians. In particular, the Russian leader called for the age of retirement for women at age 60, early retirement for mothers of large families and the introduction of a number of measures for the protection of persons close to retirement age. Proposals to change the pension system was designed as amendments to the bill and introduced by the head of state for consideration in the state Duma of the sixth of September, then the faction «United Russia» is also introduced in the lower house of Parliament the first package of amendments.

At the moment the standard age of retirement is 60 for men and 55 for women, at this level, it was installed decades ago. The issue of changes in pension legislation debated for a long time. The necessity of amendments is caused by growing life expectancy and the inability to provide a decent pension in circumstances when the number of employed in the country is decreasing and the number of pensioners, on the contrary, becomes more. Today in other countries the retirement age is usually 60-65 years.

The Central Bank assessed the impact of changes in pension legislation on GDP© Integrationalist retirement in different countries

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