Putin supports pension system change, but dislikes age increase

KALININGRAD, Jul 20 (PRIME) -- The Russian pension system must be changed or it will collapse, President Vladimir Putin said on Friday, though adding that he favors no variants of the retirement age increase the government is discussing.

“We already have only six working people per five pensioners, and the situation will not change in favor of working people as their amount will dwindle. There will be a moment very soon when the amount of working people will equal the amount of pensioners and will fall further. After that, either the pension system collapses, or the budget of the reserve fund that we use to cover the pension system’s deficit collapses,” he told volunteers.

The State Duma, the Russian parliament’s lower house, on Thursday approved the first reading a bill that gradually raises the retirement age to 65 years for men and 63 years for women from 60 years and 55 years, respectively. The bill, to take force from January 1, 2019, encompasses a transition period from 2019 till 2034 with an annual increase of the retirement age by one year.

But Putin said he dislikes the age increase.

“When they asked me before, and when they ask me now which option I like, I can say just as I’ve said before – none of them. I don’t like any option connected with the increase of a retirement age. I assure you there are not too many people in the government who like it,” he said.

Putin added that the decision should not be based on emotions, but on realistic estimates of the economy and its prospects.

The Russian economy has many problems, but it is stable and has a large safety cushion, Putin said.

“Of course, we have many problems in the economy today, but it is stable. It is developing, and it has a large safety cushion in general,” he said.

No final decision has been made on the pension reform, and it is important to hear all reasonable and grounded opinions on the problem before making a final decision, he said.

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