The Bank of Russia has estimated the benefits of raising the retirement age

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Photo: Natalia Seliverstova / RIA Novosti

Raising the retirement age will further contribute to raising the rate of growth of GDP. This is stated in the report of the Bank of Russia on monetary policy.

“Given the age structure of the population, the current share of working pensioners, the dynamics of labor productivity of employees of different ages, raising the retirement age, according to the Bank of Russia will further contribute to the increase of GDP growth at around 0.1 percentage point in 2019 and 0.2-0.3 percentage points in 2020-2021 years,” says the regulator.

Analysts called the result of the implementation of reforms to increase the numbers of citizens and, consequently, the increase in GDP growth ceteris paribus.

On 7 September the first Vice-Prime Minister, Minister of Finance of Russia Anton Siluanov stated that the pension reform will not bring revenues to the Federal budget. He noted that changes in pension legislation, to increase pension of Russians.

The authorities want to raise the retirement age for men to 65, women to 60 years (it was initially supposed to 63). The bill passed its first reading in July. The government’s decision has caused a strong reaction in society. Putin on 29 August made a special appeal to the citizens, which promised to soften the reform.

Video, photo All from Russia.

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