Siluanov called to lift retirement age

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Together with the abolition of early retirement, this will reduce load on the budget and mitigate the effects of the current demographic situation, the Ministry of Finance thinks

Russian Finance Minister Anton Siluanov considers that the retirement age should be lifted on an urgent basis.

"We need to urgently abolish early retirement and lift the retirement age. This will not only reduce load on the budget, but most importantly, mitigate the effects of the demographic situation which we will be facing in the near future," he said, addressing the Board of the Ministry of Finance in Moscow on Tuesday.

According to him, social expenses have the largest share in the structure of expenditures of the consolidated budget. In addition, there is also a large range of different benefits. "At the same time the system of social support remains ineffective: pension isn`t associated with the loss of the ability to work, but is actually paid upon the attainment of a certain age," said the Minister.

According to Siluanov, this has formed the system of big commitments, which is inefficient to overcome poverty. "We should improve the system of categorical benefits, introduce the assessment of needs while rendering social assistance," said the Minister of Finance.

Siluanov also noted that the development of the funded pension system is the key economic growth factor in the country in the context of external restrictions. "In the context of sanctions, we need domestic investors. So, further development of the funded pension system, of the universal life insurance system and insurance in general are the key issues," he explained his point of view.

The rights of the insured to form the funded component of the pension should be completely reinstated from 2016, he concluded.

The system has been reformed, "the institutions operating within the system have been checked, the mechanism for guaranteeing retirement savings have started up, this year the funds have received the savings of the previous years - and the system is ready to be restarted next year," Finance Minister added.

The government promised to resolve the issue of the funded pension in April - early May this year.

Text and pictures by INTERFAX.RU