THE AMOUNT OF PENSIONS OF RUSSIANS MIGHT BE REDUCED

It became known that the Ministry of Labor is working on a draft law, in accordance with which the funded part of the pension of Russians might be reduced. The reason is an increase in average life expectancy.

It is assumed that the changes might come into force in 2021 – it is being planned to extend the payment period from 258 to 264 months (22 years). According to Izvestia newspaper, the amount of monthly payments will decrease due to an increase in life expectancy. If earlier the amount of savings was divided by 258 months, now it will be divided by 264 months.

We should recall that in 2019, the life expectancy in the Russian Federation reached a historic maximum. It became 73.4 years for men and women both.

At the same time, the skeptics note that the new draft law shows too optimistic figures for the life expectancy and that many pensioners will not be able to receive their money at all.

According the new rules, the funded part should not “burn out”; a pensioner can bequeath it or to receive a lump sum. However, there are many situations, in which a citizen does not have time to write a will.

We should also recall that a freeze on the funded part of the pension has been introduced in Russia in 2014. It was supposed to last until 2020, but was extended until 2022 by a recent decree.