In Russia, insurance pensions are set for a single indexation in 2025, rising by 7.3 percent from January 1. The change is included in the draft law that outlines the budget for the Pension and Social Insurance Fund of the Russian Federation for the upcoming year. This move sits within the broader legislative framework governing pension payments and the budgeting process. Lawmakers and the fund’s administration have reviewed the proposal as part of efforts to preserve retirees’ purchasing power amid inflation and shifting economic conditions. The goal is to align pension growth with price movements and wage dynamics while keeping fiscal balance in mind, ensuring a predictable baseline for beneficiaries.
In 2026 two separate indexation rates are projected: 4.5 percent and 5.5 percent, reflecting different indexing formulas that apply to various pension categories. In 2027 the plan shows 4 percent and 4.1 percent. The staged increases are designed to steadily restore real income levels for retirees as the economy evolves, balancing the needs of pensioners with the long-term responsibilities of the Pension and Social Insurance Fund. The approach aims to provide a predictable path of gains against inflation while safeguarding the sustainability of the pension system.
The bill projects that the average insured pension will total 21,846 rubles by year’s end and 23,481 rubles by the end of 2025. It also forecasts that the average old-age insurance pension will reach 22,375 rubles by the close of this year, and 24,059 rubles by the end of 2025. These figures are presented as nominal values, reflecting planned adjustments for the year rather than adjustments for inflation at the point of payment. They illustrate how payouts might shift across the insured population, acknowledging that individual pensions depend on contributions, service length, and specific calculation rules. The emphasis on these averages helps convey the direction of policy aimed at maintaining pension adequacy amid rising living costs.
The explanatory note accompanying the draft law says the document accounts for the costs involved in resuming next year the indexation of pensions for working pensioners under the same conditions as non-working pensioners. In practice, this means the same rules will apply to pensioners who continue to work as to those who do not, eliminating the previous disparities in annual adjustments. The provision is designed to simplify policy implementation and keep the fund’s budgeting coherent, with oversight to ensure parity across groups while respecting the overall fiscal framework.
On the previous day it was reported that deputies of the State Duma are preparing a bill allowing children to transfer their pension points to their parents. The aim is to help older parents who have not accumulated enough points to retire on time or to receive a higher pension once retirement arrives. Transferring points could allow these parents to meet qualification thresholds earlier or at a higher benefit, depending on the mechanics of the transfer and how it affects the recipient’s pension calculation. If adopted, the measure would mark a notable shift in how pension entitlements can be managed within families and could influence the distribution of points across generations and the overall funding needs of the system.
Earlier, experts indicated that pensions would be increased in 2025. Analysts and observers have followed the reform trajectory, noting expectations for upward adjustments in pension levels as part of the ongoing modernization of the pension system. While the final numbers depend on legislative action and broader macroeconomic factors, the general consensus remains that pensioners would see higher payments in the near term, in line with government goals to protect retirement income and gradually align it with living costs.