In Russia, real pensions continue to decline at an increasing rate.
In June, 43 million Russian pensioners received an average of 15,822 rubles a month, Rosstat reported in its monthly report.
In nominal terms, pensions grew by 846 rubles, or 5.6% over the year. But the sharp acceleration of inflation “ate up” all the indexation carried out by the state.
In real terms, pensions in June fell for the fifth month in a row – by 0.8%. In May, the decline was 0.5%, in April – 0.1%, in March – 0.2%, in February – 0.1%.
The purchasing power of pensions for basic food and medicine, which retirees spend almost all their money on, has fallen further.
Thus, food prices in June rose by 8.7%. The real size of pensions, adjusted for the dynamics of this market, thus decreased by 3.1%. Medicines have become more expensive by 7.6% in six months, which gives a decline of 2% in terms of purchasing power.
According to the law on the budget, this year the Pension Fund will allocate 9.567 trillion rubles for payments to pensioners – 125 billion less than a year earlier.
The government can save money by reducing the number of pensioners. Against the background of the pandemic and pension reform from January 1, 2019 to April 1, 2021, their number decreased by 1.276 million – a record value in the entire history of available statistics (since 1998).
Three quarters of this reduction occurred in the last three quarters: from July 1, 2020 to early April, the current number of retirees decreased by 956 thousand people.
Last year, in real terms, pensions in Russia increased by 1.4%. In terms of money, the purchasing power of the average pensioner has increased by 230 rubles a month, or 2,760 rubles a year (about 31 euros).
Compared to 2013, pensions in Russia have grown by 7.2 thousand rubles, or almost 72%, but in terms of dollars, their size has collapsed by 29%: 8 years ago it was $ 304, and now it is $ 216.
The growth of pensions in the Russian Federation is regulated by the federal law of October 3, 2018: nominal indexation should be 6.3% in 2021, 5.9% – in 2022, 5.6% – in 2023, 5.5 % – in 2024. The real growth will depend on the actual inflation, which so far turns out to be higher than the authorities’ forecasts.