The size of pension payments and the level of indexation can vary widely based on age, occupation, location, and a range of other factors. In an interview with the agency, Vadim Vinogradov, dean of the Faculty of Law at the Higher School of Economics, the National Research University, commented on this topic in a feature titled Hit the primer.
Vinogradov emphasized that geography plays a significant role in retirement benefits. Residents in the Far North tend to receive some of the highest pensions due to harsher working conditions and more demanding living circumstances. Additional payments are available for retirees with dependents, for those over 80 who have spent more than thirty years working in rural areas, and for veterans, disabled people, and other protected categories. According to Vinogradov, each pension is the result of a combination of several elements. Even when the same indexation percentage is applied, the actual monetary increase can differ from person to person because of these varied factors.
The cohort of funded pension recipients in Russia has shown a sharp rise and is projected to grow further in 2024, with numbers nearly doubling compared to the current year. Ministry of Labor projections indicate that at the start of 2024, financing payments will be issued to about 209,900 citizens, compared with roughly 107,000 in 2023. The average funded pension in 2024 is expected to reach around 1,600 rubles. Simultaneously, expenditures from the Pension Fund on these payments are anticipated to rise to about 4 billion rubles. Experts believe that these increases will not undermine the fund’s ability to meet its obligations.
There is a note that policies regarding indexation of insurance pensions for non-working retirees had been set forth previously under certain recognized terms. This framework outlines how adjustments are calculated and applied, ensuring that pensioners receive periodic increases aligned with changes in cost of living and other relevant economic indicators. The ongoing discussion around indexation reflects a broader aim to maintain pensioners’ purchasing power while balancing the long-term sustainability of the pension system.