PRESS: Russians’ incomes to return to pre-crisis level in 2022

MOSCOW, May 31 (PRIME) -- Russians’ incomes are expected to return to the pre-crisis level in 2022, while pensions won’t see real growth until 2035, business daily Vedomosti reported Wednesday citing a forecast by the Economic Development Ministry.

The ministry’s target forecast until 2035, implying Russia’s economic growth exceeding the global rate, encompasses almost zero growth of pensions for the next 20 years.

Under the document, higher economic growth will be ensured through increasing the number of employed, raising investment activity and labor productivity. Employment growth will be reached through raising the retirement age to 65 years for men and 63 years for women from current 60 and 55, respectively.

People’s wages and incomes will be growing at a slower pace than the economy, the daily said. In case of successful implementation of reforms, economic growth will reach 3.5% by 2026 and will slow then, but global growth will be lower at that moment, as calculated by the Economic Development Ministry.

As a result, people’s real incomes, which fell by 10% over past three years, will reach the pre-crisis level only by 2022, the daily said.

Compared with 2016, incomes will grow 55% in 20 years, real wages by 56.5%, economy by 78%, and pensions only by 2.5%. Growth of pensions will resume only in 2024, while until 2022 they will be falling in real terms. By 2035, pensions will be 4% lower than the level of 2013.

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