Putin's version of pension reform would cost Russia an additional 500 billion rubles, says finance minister

Vladimir Putin’s proposals for softening Russia’s plans to raise its retirement age would cost the federal government roughly 500 billion rubles (more than $7.3 billion) in additional spending over the next six years, according to Finance Minister Anton Siluanov.

“This will require adjustments to our budgetary plans. This will require adjustments to projections of the Pension Fund’s budget, which we’re implementing over the coming three-year and six-year periods,” Siluanov told reporters.

In a national address on Wednesday, Vladimir Putin finally weighed in on Russia’s debate about pension reform. The president did what many expected and watered down some of the most controversial aspects of the government’s plans. Most notably, he proposed raising women’s retirement age by five years (to the age of 60), instead of the eight years currently suggested in the State Duma’s draft legislation. Under the president’s proposal, the retirement age for men would still rise to 65. Putin also says he wants to keep various benefits for separate categories of pensioners.