Pensions in Russia in 2018 will indexed 3.7 percent

The government approved the indexation of pensions from January 1, 2018 by 3.7 percent. This was stated by the Inistan of Labor and Social Development Maxim Topilin, Interfax reports .

As the minister emphasized, despite the fact that the forecast for 2017 for inflation was reduced to 3.2 percent, the government "decided to index pensions by 3.7 percent from January 1 of the next year, and not from February 1, to ensure a more significant increase in real pensions next year."

"Indexation of all payments that we are also related to inflation are various payments, primarily preferential categories of monthly cash payments, are provided for at the level of actual inflation from February 1 of the next year," Topilin said. The indexation of social pensions is planned from April 1 by 4.1 percent.

At the same time, the pensions of working pensioners in 2018 will not index, said the head of the Ministry of Finance Anton Siluanov. "For working pensioners, we have been provided and now there is an increase in real salaries at a long time than the growth in inflation. This will continue next year. And pensioners who work, they have the opportunity to have more funds and income. The increase will be higher than inflation," the minister said.

In January, Topilin said that the real amount of pensions in Russia will decline for another three years, despite the restored annual indexation procedure. "Despite the fact that we restored the indexation, if we see the forecast, then we have real pensions - all the same, in the future for three years, they are reduced," the minister said.

According to the minister, in order for the income of Russian pensioners to grow, the country needs to develop a system of pensions. “From the point of view of pension provision, we need to move forward, this is not only the task of 2017 - this is a very long prospect. It is necessary that we feel that this is a problematic issue from the point of view of pensioners' income,” Topilin said.