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On the Economic Incentives for the Delayed Retirement
[Об Экономических Стимулах Более Позднего Выхода На Пенсию]

Author

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  • Gorlin, Yury Mikhailovich (Горлин, Юрий Михайлович)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Fedorov, Vitaly (Федоров, Виталий)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

Objective demographic and socioeconomic tendencies stipulate the increasing number of retirees with respect to employees and employers who pay compulsory pension contributions. This intensifies the financial pressure on the pension system. Since the problem of raising the retirement age has not been solved, the one way to improve the financial stability of the pension system is to incentivise the delayed retirement. The necessity for the development and realisation of a mechanism for additional incentives for the delayed retirement was anticipated in the Strategy for the long-term development of the Russian Pension System (Strategy). With the aim of realisation of the Strategy, within the framework of the development of a new pension formula, there was anticipated additional coefficients for individual pension coefficients. These coefficients are used to calculate the base and insurance parts of the old-age pension. During the development of the Federal law about insurance pensions and appropriate measures to incentivise the delayed retirement, the macroeconomics situation in the Russian Federation was more stable than nowadays. A deterioration in the macroeconomic situation in the Russian Federation, in addition with the growth of the geopolitical instability after 2014, caused an increase in socioeconomic uncertainty and associated risks, including risks of the pension system. Public confidence in the pension system was threatened by self-contradicting statements from government officials from different Ministries and insufficiently consistent actions with respect to funded defined contribution pension scheme. As a result, according to the data from the Pension Fund of the Russian Federation (2Q2015), less then 20 thousand people decided to delay their retirement. Therefore, in the new macroeconomic reality it is an actual task to review measures that was developed to incentivise the delayed retirement.

Suggested Citation

  • Gorlin, Yury Mikhailovich (Горлин, Юрий Михайлович) & Fedorov, Vitaly (Федоров, Виталий), 2016. "On the Economic Incentives for the Delayed Retirement [Об Экономических Стимулах Более Позднего Выхода На Пенсию]," Working Papers 2833, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:2833
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    References listed on IDEAS

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    Keywords

    pension; pension savings; delayed retirement;
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