new year pension strategy and debate in Russia

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new year pension

Plans were unveiled to the State Duma for a bill proposing an annual 13th pension for all pensioners in Russia, as reported by Izvestia within the Just Russia – For Truth faction. The proposed measure would add a December payment and, beyond that, raise the fixed portion of the old-age pension for those who have reached 70 years of age, rather than 80 as currently defined. The aim is to ensure a more robust safety net for retirees while acknowledging their decades of contribution to the country.

The bill’s explanatory note cites the AgeWatch global index, which places Russia 65th out of 96 countries in terms of social and economic well-being for the elderly. Supporters argue that decisive steps are needed to elevate the living standards of older citizens and to detach old age from poverty and deprivation, underscoring the importance of dignity in retirement.

Sergei Mironov, leader of Just Russia – For Truth, noted that the 13th pension would be paid each year just before New Year’s celebrations. He believes that adding this pension would lift the well-being of pensioners and restore social justice for those who spent their working years building the country’s future.

Mironov stressed that, beyond social justice, the additional pension could act as a lever to stimulate consumer demand and support domestic enterprises during a period of reduced imports. He emphasized that government spending directed at pensioners would circulate through the consumer market, strengthening the broader economy under Western sanctions and making it a critical priority for the nation’s economic policy.

The group estimates the program would require roughly 654.8 billion rubles from the federal budget to cover these payments.

Liberal Democratic Party idea

The LDPR recalled its own prior proposal to the State Duma, inspired by the party’s former chairman, Vladimir Zhirinovsky. Deputies contend that implementing a 13th pension would demand around 786 billion rubles in funding, reflecting a broader debate about how to balance pension reforms with fiscal constraints.

Yaroslav Nilov, deputy head of the faction, argued that today only a small segment of older Russians — cosmonauts, lawmakers, and top officials — receive sizeable pensions. The vast majority of senior citizens live on what he described as a subsistence pension, a reality he labeled as inadequate sustenance for living costs.

Valery Ryazansky, head of the Russian Pensioners’ Union, emphasized that many retirees require additional financial support. He advocated for pension levels to be set at two to two and a half times the subsistence minimum, and he highlighted indexation as a potential pathway to improve retirement income, potentially in the form of a recurring 13th pension.

Ryazansky cautioned that the State Duma might not approve the initiative due to budgetary limits within the pension fund, suggesting that fiscal feasibility will be a major hurdle in any discussion about expanding pension benefits.

longstanding initiative

Mironov has long argued for the annual 13th pension, first voicing the idea in 2013. He noted that Russian law currently allows for pension increases at age 80, but he believes the policy should be extended to those who reach 70, ensuring a broader segment of retirees benefits from the extra support.

Describing the proposal as akin to the widely recognized 13th salary concept, Mironov said that pensioners who have turned 70 should automatically receive the additional pension every year. He discussed these plans in the context of a broader debate at a congress gathering, reiterating that such payments are necessary to combat poverty among retirees.

Mironov argued that retirees constitute a highly vulnerable group and deserve state support in the form of extra payments. He also pointed to the December period when many citizens take out consumer loans and microfinance credit—an environment in which retirees are often viewed as reliable borrowers due to stable monthly pensions. He warned that debt could become a burden if not managed thoughtfully, suggesting that a guaranteed 13th pension could reduce the need for high-interest lending and the risk of debt spirals.

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