Pension reform: Medvedev asked not to hike life expectancy after retirement
Russian government officials yesterday agreed to keep life expectancy after retirement unchanged, in direct contradiction of a Ministry of Labour draft strategy on pension reform. The draft strategy called for life expectancy after retirement to be raised from the current 18 years to 19 years in 2013 and 21 years in 2015. After 2015, it would set the indicator according to average mortality data for each age group. However, Olga Golodets, the deputy prime minister, informed Dmitry Medvedev, the prime minister, that the proposed measure was proving unpopular in the social sphere. Medvedev subsequently told her to work on the problem, while in the meantime, life expectancy after retirement would be kept unchanged, and altered more gradually.
This is not yet a final decision, with previous official statements setting the deadline for finalising pension reform strategy at the end of this year. However, we believe that in general, the funded part of the pension is getting more vulnerable.
Maxim Oreshkin, Daria Isakova
VTB Capital analyst
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