Pension provision in the Russian Federation

Пенсионное обеспечение в Российской Федерации

The "Pension Provision in the Russian Federation" was established in 2018 by the Government of the Russian Federation to secure a sustainable and equitable pension system. Implemented at the national level, this policy covers the entire Russian population, ensuring 100% of citizens are either receiving pensions or entitled to them upon meeting eligibility criteria. It targets both working-age citizens approaching retirement and current pensioners, primarily those aged 60 and above. This system, based on compulsory pension insurance, aims to balance revenues and expenditures to provide a socially acceptable pension level. Key measures include the provision of insurance pensions, categorized into retirement, disability, and survivor pensions, which are funded through a nearly entirely distributive (solidarity) model. For those who lack eligibility for insurance pensions, social pensions are provided. Additionally, Federal Law No. 350-FZ, enacted in 2018, strengthens the system’s financial stability to ensure sustainable pension increases, with plans for indexation above inflation rates and a 7.3% increase in insurance pensions by January 2025. The government also guarantees that non-working pensioners’ incomes meet the subsistence minimum in their region, and all pension benefits are adjusted annually based on investment returns, ensuring a steady growth in pension levels over time.