The Russian government will have to revisit the issue of raising the pension age in two to three years, former finance minister Alexei Kudrin said on Monday.
Unless something is done about that Russia will soon have no funds to spend on infrastructure, he warned in an interview with Russia Today.
“We are already spending 1 trillion rubles a year to cover the Pension Fund’s deficit,” he said.
His remarks come after Finance Minister Anton Siluanov said on Friday pension reform in Russia will not include the raising of the pension age.
The International Monetary Fund (IMF) said in mid-June the pension age in Russia should be increased to 63 years for both men and women.
Russia’s Finance Ministry previously proposed increasing the pension age from 2015. The ministry said the age should be raised gradually, by six months for women and three months for men annually until both categories reach an equal retirement age. Currently, women retire at the age of 55 and men at the age of 60 in Russia.
The retirement age in Russia is much lower than in other European countries. Miners, lumberjacks, pilots, cosmonauts, and those in a dozen other professions are entitled to retire even earlier.
The World Bank has also recommended Russia raise the retirement age, following forecasts suggesting Russia’s economically-active population will shrink by 25 million people to 2050 due to unfavorable demographic trends.