• Minimum pension in Russia. Minimum pension in Russia Will the pension be increased this year?

    02.08.2020

    The majority of Moscow pensioners have become 3 thousand rubles richer since January 1, 2018 - this is the amount by which pensions were increased in accordance with Moscow Government Decree No. 805-PP of October 31, 2017. At the same time, there are no new increases for 2019 - the city’s social standard has not changed. Let us remind you that after the increase, the minimum pension in Moscow in 2018-2019 for non-working pensioners increased to 17,500 rubles. The minimum pension amount is guaranteed to residents who have worked seniority and those receiving an old-age or disability insurance pension, as well as registered in Moscow for more than 10 years.

    Let us tell you in more detail what changes have occurred in pension legislation capital in 2019, who are entitled to a minimum pension of 17,500 rubles, who can only count on an increase in payment to the cost of living in Moscow, who will receive allowances and raises. Attention: From September 1, 2019, the minimum pension in Moscow will increase by 2,000 rubles, read more.

    Pension in 2018 and 2019 - it was and became

    What minimum pension awaits citizens in Moscow has been discussed by the Moscow government, headed by Mayor Sergei Sobyanin, since the fall of 2017. As a result, the social minimum of the city material standard for non-working pensioners in Moscow was increased from January 1, 2018 and amounted to 17,500 rubles. In 2017, the minimum pension in the capital was 14,500 rubles, that is, the increase was more than 20%. However, the expected increase in the city social standard did not happen in 2019 - it remained at the same level as last year.

    The Moscow authorities were able to find money to support a vulnerable group of the population thanks to the economic prosperity of the city and the increase in incomes of working citizens. The increased pension for Muscovites is a reflection of the economic growth that the Russian capital is experiencing. Sobyanin announced that there would be an increase in pensions in Moscow in 2018 at a meeting of the Presidium of the Moscow Government in the fall of 2017. An economic justification for the introduction of appropriate city support measures for pensioners was also given there.

    Officially, the amount of social benefits and additional payments to pensions is fixed:

    1. Decree of the Moscow Government No. 805-PP dated October 31, 2017 “On establishing the amounts of individual social and other payments for 2018.”
    2. Decree of the Moscow Government of December 11, 2018 No. 1525-pp “On establishing the amounts of individual social and other payments for 2019.”

    Who is entitled to an increase to the city standard?

    The increase in the minimum wage to 17,500 rubles will affect the category of pensioners who, at the time of registration of the supplement, have had a permanent residence permit in the capital for more than 10 years (this includes living in territories annexed to Moscow).

    Based on clause 5(1) of the Decree of the Government of the capital No. 1268-PP, these citizens have the right to increase their pension income to the level of the city social standard if their material income is less than the minimum pension in Moscow.

    Who will get an increase to the living wage?

    Minimum pension in Moscow in 2019 for those living in the capital for less than 10 years (this applies to both those who have permanent registration in the capital and those who have temporary registration) will not reach the Moscow minimum of 17,500. Based on clause 7 of Moscow Government Decree No. 1268-PP, these citizens can count on an additional payment up to the subsistence level of a capital pensioner if their pensions are less than the established amount.

    From January 1, 2019, the cost of living for a pensioner in the capital is 12,115 rubles. It was introduced by Law No. 22 of October 31, 2018 “On establishing the cost of living for a pensioner in the city of Moscow in order to determine the regional social supplement to pensions for 2019.” Compared to 2018, this figure increased by 299 rubles. Previously, the pension PM was 11,420 rubles. according to the resolution of the Moscow Government No. 952-PP dated December 05, 2017

    Who won't have their pension increased to the minimum wage?

    Claim additional payment up to minimum size Pensions in Moscow cannot:

    • persons living in the capital and not registered;
    • those receiving pensions outside of Moscow;
    • Russians temporarily (more than 6 months) or permanently residing outside the country;
    • pensioners using social services of social service organizations;
    • undergoing compulsory psychiatric treatment or in correctional institutions.

    The minimum pension in Moscow at the beginning of 2019 for working pensioners will not change, not counting certain categories that are entitled to a regional compensation supplement in accordance with Moscow Government Decree No. 1005-PP dated November 27, 2007, as amended as of December 29, 2018. include disabled people and WWII participants, employees of federal and municipal healthcare organizations, education, etc.

    Working pensioners should expect an increase in payments from August 2019; the size of the increase is not yet known.


    Changes for 2019

    • This year, from January 1, and not from February 1 as usual, insurance pensions for non-working pensioners were indexed by 7.05%.
    • From 01/01/2019 the cost of one pension coefficient, according to the Pension Fund of Russia, is equal to 87 rubles. 24 kopecks, and the size fixed payment for old age pension (not taking into account corresponding increases) - 5,334.19 rubles.
    • From April 1, 2019, across the Russian Federation, including in Moscow, social pensions and state pensions will increase by 2%. pension provision.

    Increase in other social benefits for pensioners

    In 2018, additional monthly payments were regulated by Moscow Government Decree No. 805-PP dated October 31, 2017. For 2019, a new act was adopted - Moscow Government Decree No. 1525-pp dated December 11, 2018 “On establishing the amounts of individual social and other payments ..."

    It, in particular, stipulates that most social payments will remain at the 2018 level:

    • persons subjected to repression and rehabilitation - 2,000 rubles;
    • rear workers - 1,500 rubles;
    • labor and military veterans - 1000 rubles;
    • disabled people and WWII participants for consumer products, those who have not completed their work experience, those who were injured in childhood, honorary donors of the USSR - 2,000 rubles each;
    • participants who defended the capital - 8,000 rubles;
    • widowed Heroes of the USSR or the Russian Federation, Socialist Labor, full holders of the Order of Glory and Labor Glory (not remarried); to the parent of the deceased (deceased) Hero of the USSR or the Russian Federation; for old age or disability pensioners who have merits in sports - 15,000 rubles;
    • Heroes of the USSR or the Russian Federation, Heroes of Socialist Labor or Labor of the Russian Federation, holders of the Order of Glory or Labor Glory - 25,000 rubles;
    • persons retirement age who are honorary citizens of Moscow - 50,000 rubles;
    • for pensioners with other honorary titles (people's, honored artist) - 30,000 rubles.

    The innovations of the resolution for 2019 were:

    • Additional social payments of 1,000 rubles. per month for veterans of labor and military service (women over 55 years old, men over 60).
    • Monthly compensation for local telephone subscribers - 250 rubles.
    • A number of one-time social payments have been established for 2019 - financial assistance in connection with the 74th anniversary of the victory, the 30th anniversary of the withdrawal of troops from Afghanistan, for citizens affected by radiation. The amount of such financial assistance will be determined by individual acts of the city authorities.

    You can download the full text of Resolution No. 1525-pp here. To obtain information and apply for an additional payment, a pensioner must contact the local Pension Fund office with an application for additional payment and a package of documents confirming this right.

    Next year, Russian pensioners will see a triple increase in pensions. True, we are talking about a one-time increase for three different categories of payment recipients - labor and social pensions, as well as pensions for working pensioners. In general, the draft budget does not contain anything new - everything is as usual. However, officials still decided to make some amendments to this process. In particular, the Ministry of Finance promised that pensions for those who retired and left labor activity the elderly will be increased by a factor exceeding the inflation rate.

    The expected inflation rate in 2019 is 3.2%. The indexation coefficient, in turn, should reach 6.6%, which is almost 3 percentage points higher. This seemingly insignificant “handout” to pensioners is perceived by the financial department as a real achievement. Firstly, the Ministry of Finance rarely approves such ideas, and secondly, this, it turns out, should support pensioners after so many years of falling insurance payments they receive. Who will have their pensions increased and by how much, and what is the reason for this?

    To whom and for how long?

    The indexation of pensions will begin, not traditionally for Russia, but already in January, and it is in January that it will cover the largest group of its recipients - unemployed elderly people. By general rule, the increase should be dated back to February, due to the need to calculate the level of annual inflation. In 2020, since indexation will be carried out at a higher level, it was decided not to wait for the results of statisticians. As the head of the Ministry of Labor Maxim Topilin has already announced, in order to ensure a “more significant” increase in pensions, they will rise by 6.6% from January. It is worth noting that inflation in 2019 exceeds all expectations of officials - the initially planned level was supposed to be about 4%. But since today it has not even exceeded 3%, a 6.6% increase in pensions will in any case be higher than inflation, so real growth pensions for Russian elderly people seem to be guaranteed.

    They will not leave the so-called pensions without indexation next year social pensioners. In Russia, it is received by disabled people, veterans, some categories of dependents, as well as those who were unable to accumulate a sufficient number of years by the time they reached retirement age. insurance period. Today it averages about 9.2 thousand rubles. True, the increase is scheduled only for April 2020, but the indexation coefficient will also be higher than the inflation rate and will be 7%. Please note that the size of this pension seriously depends on the basis for its assignment: some disabled people receive 15-16 thousand, while many old people who do not have required experience– 5-6 thousand rubles.

    The third group who are entitled to indexation by law are working pensioners, of whom today there are about 12-14 million people. But several years ago it was canceled and there are no plans to reinstate it next year, as the Minister of Labor made clear. But at the same time, working pensioners also continue to pay insurance premiums, which are annually converted into points, so leaving them without an increase in pensions is at least criminal. Therefore, in August 2020 they will receive a pension increase depending on the points earned. The cost of one point next year will be 93 rubles. The maximum increase in pension is 3 points. Thus, regardless of the level of salary and contributions, the maximum increase for working pensioners will be 279 rubles. Better than previous years

    In fact, any changes to the indexation procedure will affect only non-working pensioners. Last year, in order to save money, as we remember, indexation was carried out by only a third of the level of price growth set by the government: instead of increasing by almost 13%, pensions increased by only 4%. At the beginning of the year, the elderly were paid another 5 thousand rubles as compensation. one-time assistance. True, these funds can only compensate for moral damage - financial losses in the future are estimated much more seriously than 5 thousand rubles. Therefore, we cannot exclude the fact that the promised increase next year by 0.5 percentage points above the level of price growth is introduced as a partial coverage of these losses. Although the size of such a “half-percent handout” and the 8.9 percentage points of under-indexation in 2016 are, of course, incomparable, the Ministry of Finance is confident that all the losses of the elderly have been “practically compensated.”

    However, there are a number of others obvious reasons, which determine the desire of officials to increase payments above inflation. In particular, the growth in income of the Pension Fund, which the government refers to, became the argument with which the Cabinet of Ministers justified the need to carry out indexations to a higher level, and even a month earlier.

    Please note that the funds necessary for such not only “generous” but early indexation were already included in the draft federal budget earlier. But how it was presented to the public is a completely different question. Not only is the Pension Fund ordered to pay “additional income” to pensioners from the very beginning of the year, and this is a whole month earlier, but the payment itself is presented as a measure restoring social justice. They say that in the context of falling incomes of the population, the authorities should care not only about the nominal, but also about the real growth of assigned payments.

    What is the real growth of pensions in the eyes of the Cabinet of Ministers? At the moment, the average pension in the country is 15 thousand rubles. In the event of an increase in the inflation rate, the pension will increase to 15.5 thousand rubles, with an increase that exceeds the inflation rate - 16 thousand rubles. It turns out that the real increase in pensions will be, roughly speaking, an average of 700 rubles. For those whose pension is below average, the increase will also be lower.

    There is money, but you hold on

    “Increasing the level of material support” for the elderly for the next 2 years is also included in the forecast created by analysts of the Ministry of Economic Development. However, this formulation has not changed in the macroeconomic forecast of officials for many years, which does not change anything. As Rosstat reports tell us, the real pensions of old people, adjusted for the official inflation rate, are constantly falling. Such a drop hardly indicates an increase in the level of well-being. Interestingly, the Ministry of Economic Development previously predicted more high level inflation than the Ministry of Finance projects. It is already clear today that their forecasts are not destined to come true.

    Nevertheless, regardless of what the actual figures are, state social policy is based precisely on these forecasts. And if we are talking about improving the well-being of pensioners, and social policy, as the government declares, is based on anti-poverty principles, then over the next 2 years the pension should be indexed by no less than 15%.

    As for the expected indexation of 6.6%, experts are unanimous in their opinion: it can only cover the increase in prices for goods and services that specific year added to the consumer basket. The increase will not cover real inflation in any way. The fact is that even when the needs of the elderly are reduced to a minimum, in reality they turn out to be much broader than officials believe. In addition to the minimum socially important products and utilities, old people spend money on treatment, medicine, purchasing cheap clothes, etc. Their situation continues to deteriorate. Interestingly, even focusing on increasing the level of material security for pensioners, in its planned forecast until 2020, the Ministry of Economic Development has already included a reduction in pensions - by a total of 2%.

    But indexation is intended only for non-working old people - those who work presumably provide for themselves. In addition, they will also receive a promotion in August. But pension market experts consider this approach not only erroneous, but also discriminatory: the majority of pensioners receive an insignificant labor income, which is also unable to cover rising prices. At the same time, they are deprived of indexation, which is a social injustice, and who in the government planned to restore them.

    The volume of funds accumulated by the Pension Fund increased in 2019. This, according to market analysts, only means that the state has money for more significant indexation. Due to the situation that has arisen over the past few years, it would be logical to compensate for the under-indexation of previous years. But the government does not take on such responsibilities.

    In order to increase the consumer abilities of citizens who have retired, the government annually indexes pension payments. An increase in the old-age pension is planned for 2018.

    Starting from 2015 the amount pension accruals consists of two parts, which are insurance and savings in nature.

    In accordance with the current Federal Law“On insurance charges” under No. 400-FZ, the increase in old-age pensions for state pension provision will be carried out according to a special schedule in two stages. At each stage, indexation will be carried out only for certain categories of persons receiving cash benefits.

    First stage – January

    At the first stage, an increase in insurance premiums is provided for non-working pensioners. The surcharge equal to 3.7% is accrued from January 1. This figure was determined in accordance with the level of price increases at the end of the past year.

    Fixed supplement to the insurance pension, tied to the consumer price index, at the beginning of 2018 - 4.9 thousand rubles.

    For clarity: if last year the average amount of old-age cash benefits was equal to 13,657 thousand rubles, then taking into account indexation, in monetary equivalent reaching an amount of 400 rubles, this figure will increase to an average level of 14,045 rubles.

    Second stage – April

    From April 2018, you can count on an increase in the old-age pension in the amount of 4.1%, as well as social benefits for low-income and disabled citizens. This category also includes those persons who, for some reason, have not earned the required length of service.

    Because the social payments often do not reach the subsistence level, which in 2018 is 9,159 rubles; elderly people whose income is below it also receive social subsidies. They will increase the amount of benefits to the PMS level established in the state.

    Let us recall that in 2017 it was equal to 8.5 thousand rubles. 3.9 million people received social benefits.

    There are two types of help:

    • social – intended for all persons of retirement age in our country who earn below the subsistence level;
    • regional - intended for residents of regions where the PMI is below average, but at the same time the income of people of retirement age is inferior to this indicator.

    To provide regional assistance, by order dated December 15, 2017. under No. 2830, the government approved the dispersal of interbudgetary transfers to the regional budgets of 13 constituent entities of the Russian Federation. The main purpose of the allocated amount is 7085.7 million rubles. – pay local social supplements to pensions in order to maintain the income of non-working persons at a level not lower than the subsistence minimum wage.

    Budget allocations are designed to pay off additional payments for 424.6 thousand recipients and calculate the average value of additional payments in the range of 2351.4-8414.2 rubles.

    But it is worth considering that the budget allocation program to increase the amount of PMS concerns only social benefits new faces who have retired. Those who received payments before 2018 are not covered by the current program.

    According to Maxim Topilin, Minister social protection, the decision to shift the schedules of the first stage from February, as was the case last year, to January was made in order to ensure a more significant increase in real pensions.

    In general, by the beginning of 2020, the Russian Pension Fund is encouraging in that it plans to ensure a significant increase in old-age pensions. It is assumed that the average amount of payments will increase by 1.6 thousand rubles. Due to this, the average regular cash income of persons who have reached retirement age will be about 15.4 thousand rubles.

    What to expect for working pensioners

    The number of pensioners in our country reaches 43 million. Of these, approximately 30% are still working. The indexation of old-age pensions in 2018 does not apply to these people, since at this stage the program is frozen until the beginning of 2019.

    The government adheres to the point of view that pensioners who continue to work do not need bonuses, even if they are required by law.

    Working pensioners can only count on an increase accrued as their length of service increases.

    According to the new rules, insurance contributions in the amount of 22% of salary paid by companies to the Pension Fund for working pensioners are converted into pension points. One point unit is equivalent to an amount of 81.49 rubles. It turns out that the higher the salary, the more points you can earn.

    The procedure is non-declaratory in nature. Specialists pension fund carry it out without personal appeal from citizens. This year the recalculation will occur on August 1.

    But there are also limitations in this matter. The maximum allowable amount of the increase should not exceed three points, which corresponds to 245 rubles.

    As an alternative, the government offers other incentives for working pensioners in the form of suspension of payments or voluntary postponement of the date of retirement. This makes it possible to receive an increasing coefficient in the future.

    Indexing will not affect military pensioners - people who have retired from the ranks of the Ministry of Internal Affairs, the Ministry of Emergency Situations, the army and the Federal Penitentiary Service. Payments to pensioners of this category will continue to be carried out on the basis of Law No. 43, adopted on February 12, 1993, namely Article No. 4468-1.

    In accordance with the accrual rules, the level of pension, which directly depends on salary, in 2017 was initially set at 72.23%. Every year it increases by 2% until it reaches 100%.

    Many working citizens and people who have retired can be pleased with the latest news from the Ministry of Finance. It plans to launch a new pension savings system. The scheme being developed is beneficial in that the accruals become the personal property of the payer. During the accumulation, if necessary, for example, the same disease, he can remove them at any time without any problems.

    Video about old age pension:

    The minimum pension is the minimum subsistence level for a pensioner established in the region. Payments to pensioners cannot be lower than this value. In 2019, the all-Russian cost of living for a pensioner is 8,846 rubles. In some regions the payments are higher, in others less.

    In 2019, the highest living wage for a pensioner is in Chukotka (19 thousand rubles), and the lowest is in the Tambov region - 7,811 rubles.

    The size of a pensioner’s monthly income is set at the end of each year by regional authorities; the calculations take into account the cost of the consumer basket, the cost of mandatory payments and taxes.

    The minimum pension is paid to all non-working pensioners living in the Russian Federation.

    If the pension is below the minimum wage, the low-income recipient is given an additional payment.

    Table by region

    The table shows the living wages of pensioners by region in 2019. Data for 2020 will be confirmed later.

    The subject of the Russian FederationPMPThe subject of the Russian FederationPMP
    Central Federal District
    Belgorod region8016 Bryansk region8523
    Voronezh region8750 Ivanovo region8576
    Kostroma region8630 Kursk region8600
    Moscow12115 Moscow region9908
    Oryol region8730 Tver region8846
    Yaroslavl region8163 Tula region8658
    Vladimir region8526 Smolensk region8825
    Kaluga region8708 Ryazan region8568
    Lipetsk region8620 Tambov region7811
    Northwestern Federal District
    Arkhangelsk region10258 Rep. Komi10742
    Nenets Autonomous Okrug17956 Rep. Karelia8846
    Saint Petersburg8846 Leningrad region.8846
    Murmansk region12674 Kaliningrad region8846
    Vologda region8846 Pskov region8806
    Novgorod region8846
    North Caucasus Federal District
    Rep. Dagestan8680 Rep. Ingushetia8846
    Karachay-Cherkess Republic8846 Rep. North Ossetia Alania8455
    Chechen Republic8735 Stavropol region8297
    Kabardino-Balkarian Republic8846
    Southern Federal District
    Rep. Adygea8138 Rep. Kalmykia8081
    Astrakhan region8352 Volgograd region8569
    Rep. Crimea8370 Sevastopol8842
    Rostov region8488 Krasnodar region8657
    Volga Federal District
    Rep. Bashkortostan8645 Rep. Mari El8191
    Rep. Tatarstan8232 Udmurt Republic8502
    Kirov region8474 Nizhny Novgorod region.8102
    Penza region8404 Perm region8539
    Saratov region8278 Ulyanovsk region8474
    Samara region8413 Rep. Mordovia8522
    Chuvash Republic7953 Orenburg region8252
    Ural Federal District
    Kurgan region8750 Sverdlovsk region.8846
    Chelyabinsk region8691 Khanty-Mansi Autonomous Okrug-Yugra12176
    Tyumen region8846 Yamalo-Nenets Autonomous Okrug13425
    Siberian Federal District
    Rep. Altai8712 Rep. Buryatia8846
    Rep. Khakassia8782 Altai region8669
    Irkutsk region8841 Kemerovo region.8387
    Omsk region8480 Tomsk region8795
    Transbaikal region8846 Novosibirsk region8814
    Krasnoyarsk region8846 Rep. Tyva8846
    Far Eastern Federal District
    Amur region8846 Jewish Autonomous Region9166
    Kamchatka Krai16543 Magadan region15460
    Sakhalin region12333 Primorsky Krai9988
    Chukotka Autonomous Okrug19000 Khabarovsk region10895
    Baikonur8846 Rep. Sakha (Yakutia)13951

    By what percentage will pensions be increased in 2020?

    From 2020, the minimum pension will also be indexed according to old age. The former depend on the established indexation coefficient, the latter - on the value of the PM in the region.

    By old age

    For non-working pensioners, the old-age insurance pension will be increased from January 1. The amount of payments will be indexed by 6.6%. One pension point in 2020 will be equal to 93 rubles. (in 2019 - 87.24 rubles)

    To find out the indexed pension amount, you need to multiply the amount of last year's payment by 1.066. Considering that in 2019 the average insurance pension in Russia - 15,000 rubles, then in 2020 pensioners will receive 990 rubles more - 15,990.

    Minimum

    In February 2019, Vladimir Putin, in his annual Address to the Federal Assembly, proposed changing the indexation of pensions that do not exceed the “minimum wage”.

    First, you need to bring the pension amount up to the monthly minimum, and then index it. New calculation rules were approved by the Government of the Russian Federation on July 30, 2019.

    The living wages for pensioners in the regions for 2020 will be known by the end of 2019.

    Minimum length of service for calculating a pension

    To apply for a pension in 2019, you must have at least 10 years of work experience. The length of service includes not only periods when a person worked, but also, for example, when he served in the army, was on maternity leave, on paid leave, on sick leave, or caring for an elderly person.

    Pensioners from 2019 are women 60.5 years old and men 65.5 years old.

    Experience standards are increasing every year. In 2020, to apply for an insurance pension, you need 11 years of work experience.

    If there is no insurance experience, you can only receive a social old-age pension. And then, 5 years after reaching retirement age (taking into account the transition period from 2019-2023).

    Social supplement to pension up to the subsistence level

    If a pensioner receives payments from the Pension Fund below the minimum pension, he is paid in addition to the minimum pension level either from the federal budget or from the regional budget.

    If the pension is below the national subsistence level, the supplement will be federal.

    If the pension is equal to the all-Russian minimum wage, but lower than the regional one, the authorities of the subject will pay extra. To receive the bonus, you need to contact the social security authorities. Only non-working pensioners are entitled to receive social benefits.

    In September, the government submitted a draft budget for 2018 to parliament for consideration, which, in particular, talks about plans to increase pensions in Russia. Indexation in the coming year will be a little non-standard, but pensioners, judging by what they are saying in the government, should not worry - this time the “non-standard” situation will supposedly even be beneficial for them. Let's look at the latest news about increasing pensions for non-working pensioners in 2018, when and by what percentage pension payments will be indexed.

    By what rules are pensions raised in Russia?

    Before we talk about 2018, let’s remember the scheme by which pensions were increased several years ago, when the state was also experiencing problems with money, but several others - the government did not know where to spend it and set aside the surplus for a rainy day. It is clear that, having surplus money, the state could easily fulfill all its social obligations, so the scheme that worked then, if not ideal, was still close to it. Pensions were increased once a year by the percentage of inflation of the previous year. This was done in the following order:

    • in January, the government received from Rosstat accurate data on inflation over the past year;
    • in February, pensions were increased by the percentage of inflation of the previous year.

    This scheme is simple, but it allowed elderly Russians, if not to get rich, then at least not to get too poor. The real value of pensions remained approximately the same, and a pensioner could buy approximately the same amount of goods and services in the volume and quality familiar to him. The failure occurred after the start of the crisis in the Russian economy. At the end of 2014, the value of the ruble fell by almost half, and revenues from oil exports also dropped sharply with the collapse of oil prices. And if the budget for 2015 had already been adopted and, as regards pensioners, it was more or less fulfilled, then 2016 became quite difficult. Pensions were raised in February by a percentage much lower than inflation in 2015, and prices continued to rise. In 2017, the government partially rehabilitated itself for this by issuing a one-time payment to all pensioners at the beginning of the year - five thousand rubles to each pensioner, regardless of the size of his pension. In February 2017, pensions were increased by the amount of 2016 inflation.

    Although the government indexed pensions in 2017 to the level of inflation in 2016, the indexation was carried out relative to the current amount of payments, and due to the fact that in 2016 the increase in pensions was carried out by an insufficient percentage, the real amount of pensions then decreased. This lag still persists, and in fact, pensioners currently cannot afford to buy the same set of goods and services in the same quality that they could afford, for example, five years ago.

    What increase in pensions for non-working pensioners does the budget for 2018 provide for?

    So, let’s move on to what awaits Russian pensioners in 2018. Indexation of pensions for non-working pensioners will be non-standard both in terms of timing and percentage:

    • pensions will be increased not in February, but already in January;
    • the indexation percentage is known in advance, and it is not equal to 2017 inflation.

    According to the latest news from the government, from January 1, 2018, pensions will be increased by 3.7%. This percentage looks quite small, but throughout this year, economists from the government and the Central Bank have been assuring us that the Russian economy is not only sticking to the course set for it - not to go beyond 4 percent of inflation at the end of the year, but is even moving towards inflation turned out to be even lower - about 3.2%.

    Is it good or not - the question is not so simple. Of course, ordinary people it seems that the lower the inflation, the better - prices are stable, going to the store does not terrify you because of the rewritten price tags. However, many economists compare too low inflation with a low body temperature, hinting at economic ills.

    However, if inflation really turns out to be 3.2 percent, then the increase in pensions in January will take place by an even larger percentage than the 2017 inflation. In this case, the real size of pensions for non-working pensioners in 2018, judging by latest news, at least slightly, will increase, although, of course, it will be almost impossible to notice this half a percent in practice. Let us remind you that this news concerns specifically non-working pensioners. Those working Russians who are already retired but still continue to work have had their pensions frozen for several years. And they will not be unfrozen in 2018. The state thus saves on social expenses in order to somehow reduce the budget deficit.

    Will (and when) there be a lump sum payment for pensioners in 2018?

    Based on the experience of 2017, many pensioners are wondering whether in 2018 there will be the same one-time payment of 5,000 rubles (or another amount) as there was in January of this year. Let us remember that this payment concerned all pensioners without exception, including working ones. Knowing that indexation of pensions awaits them only after leaving work, Russian pensioners who continue to work hope that at least having received a lump sum payment, they will wait for some additional money from the state in 2018.

    Russian pensioners should not expect a one-time payment in 2018.

    The 2017 experience was a one-time one, and that payment was related exclusively to the problems of the previous year, 2016. Since in 2017 everything was in order with the indexation of pensions, and it was even carried out twice for non-working pensioners (in February there was a major increase, and in April there was a very minor revision of the size of pensions associated with additional money available to the pension fund), there are no reasons no lump sum payment in 2018. Moreover, indexation is formally promised to be higher than the inflation of the previous year.

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