According to the former Minister of Finance, head of Center for strategic development Alexey Kudrin, the government have no other resources to pay the elderly at least the current modest pension. So he sees no alternative to raising the retirement age in Russia.
Kudrin said that in 2016, the government first broke its obligations to the elderly and held the indexation of pensions for all recipients, and now the state Duma and the government discuss the issue of restricting payments to working pensioners. In his opinion, it shows the shortfall in the Pension Fund of Russia, which cover through other sources fail.
Kudrin predicted the script for “the Truth.Ru” commented associate Professor in the Department of Economics and Finance, Russian presidential Academy of national economy and public administration under the President of Russia (Ranepa) Alisen Alonenow.
– Whether there is no other way but raising the retirement age?
– There are ways, of course, ways not by raising taxes. A tax increase we can achieve the opposite effect, when a business goes into the shadows. And so we have fairly high costs of payroll. And General, the insurance contribution rate is 30%. That’s a lot. And since the premiums are included in the cost of products, our competitive capabilities decline relative to producers of similar products in the West, in other countries, including neighboring countries.
So, of course, the question should be put about the decrease in insurance premiums. In this case, possible side effects, but it will take some time lag. The decrease in insurance rates, say, from 30% to 20% after a while and might even increase tax charges: when a lower rate aktiviziruyutsya business, an increasing number of enterprises, and more taxes will not come at the expense of higher rates, and due to the broader tax base.
In addition, can be deduced from the shadow of some businesses that will provide additional contributions to the Pension Fund, social insurance Fund etc.
This question was not popular, because in the first year, of course, we get some lost income, and they will need to compensate somehow. But we have yet to reserve Fund – national wealth Fund. I think in principle it would be possible to take this step to meet the needs of the business.
On the other hand, the question of raising the retirement age is inevitable, many countries have already gone down this path. Most likely, this is the easiest way. Therefore, I think, in the government and expert community in making decisions, will follow the path of least resistance when you can save by raising the retirement age. Although I think it is better to stimulate business in an active business.
– Are there other ways to improve the financial situation of older Russians?
– Yes, there are a lot of ways. And, of course, necessary to increase the efficiency of use of means of the Pension Fund, because the money is often spent inefficiently, and large amounts are deducted for the maintenance of the Pension Fund.
Another way is to improve the quality of administration of these pension contributions. However, we don’t have enough well-developed financial institutions, the money are not very efficient, so they do not bring any significant income. In the best case we store them, and it suggests that the population is falling confidence in the pension system. Of course, this is reflected in the business climate and ongoing reform.
We see that some reforms are being implemented, but at the expense of taxpayers. You can, of course, to increase pensions at the expense of increasing seniority, but all of these measures will work better if used in combination. We need to start with lowering the total insurance premium.
It also would have increased the inflow of foreign currency. But entering foreign markets is only possible when we create in-country conditions more favorable taxation compared with our competitors.