Vadim Vinogradov, who serves as the dean of the Faculty of Law at the Higher School of Economics, a leading national research university, outlined how pension protections can shift for retirees who continue working as freelancers. The expert spoke in an interview with Hit the primer, offering a detailed look at how self-employment interacts with pension indexing and other allowances. His assessment emphasizes the practical consequences for freelancers who decide to maintain active income streams beyond traditional retirement age.
The core issue centers on pension indexing in the context of self-employment. When a person operates as a freelancer and does not contribute to social insurance or accumulate work experience through formal employment, pension indexing proceeds under the rules for the unemployed category. In this scenario, the pension is adjusted according to applicable laws, and the increase applies in the same proportion as for other beneficiaries identified as unemployed. Vinogradov notes that this approach preserves a basic level of support but does not reflect additional earnings or professional activity from freelancing, which can limit the scope of increases tied to work history.
Conversely, if a freelancer makes social insurance contributions and accrues work experience, their status aligns with that of a traditional employee. In such cases, the right to regional supplements and automatic pension indexation may be withdrawn, according to Vinogradov. This shift occurs because the individual is now treated within the insured labor framework, where pension adjustments are more closely tied to formal employment records and contributions rather than the broader category of self-employed workers.
Vinogradov also highlights that once the threshold for income-related benefits is surpassed, certain forms of financial aid tied to earnings could be canceled or reduced. This potential change underscores the importance for freelancers to understand how their income level interacts with eligibility criteria for various social supports, including regional additions to pensions and other means-tested benefits. The nuance lies in balancing active income from freelancing with the protective measures attached to retirement benefits, which can be sensitive to income and employment status fluctuations.
In a separate thread of discussion, the State Duma has previously signaled changes affecting pension provisions. It was announced that some Russians could receive a doubled pension starting January 1, 2024. Svetlana Bessarab, a member of the State Duma Committee on Labor, Social Policy and Veterans Affairs, indicated that Russians who reach the age of 80 in December would see increases in fixed payments to their old-age insurance pensions beginning in the following year. The intention behind these proposals appears to be a broader expansion of basic pension protections for senior citizens and a recognition of the moral and social effort contributed by those entering advanced age.
Finally, attention is drawn to the government’s earlier decision: Vladimir Putin signed legislation designating the Russian Post as the official channel for delivering pensions. This move aimed to streamline the distribution process and ensure timely, predictable payments to retirees across the country, including those who live in remote or rural areas. The policy shift reflects an ongoing effort to modernize the social security system while preserving the accessibility and reliability of pension disbursements for all eligible recipients.