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Why Russia does not need working pensioners

Почему России не нужны работающие пенсионеры

Modernization of economy, raising the retirement age and employment of seniors is a Swan, cancer and pike of the modern economy. Improvement in one parameter leads to deterioration of others. The situation could fix rapid growth of the economy, but unfortunately we have what we have.

Raising the retirement age in Russia could be a source of resources for higher pensions, better healthcare, especially for older people and better financing of the sphere of social service, said in an interview “Газете.Ru” the Minister of economic development (med) Maxim Oreshkin.

However,”to raise the retirement age makes no sense for a number of reasons, according to the rector of Academy of labor and social relations Alexander Safonov.

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First, the prospects of the labor market are such that – the older a person is, the less its involvement in the market. There are no vacancies or they are reduced, and the only form of employment for senior citizens is the preservation of their jobs, usually for low wages and unfavorable working conditions.

In other words, the economy needs working hands of pensioners, and to employ them nowhere.

The second problem relates to the fact that the increase of productivity and automation of production pushes the labor market workers, so even from a strategic point of view, raising the retirement age looks not important,” explains BAFS “the Economy today” Safonov.

The expert suggests that raising the retirement age will have a negative impact on the situation with pensions for five years, since before lingering on the labour market, people in the pension system will be increased obligations.

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Another point not in favor of increasing the retirement age is associated with overall health and hidden disability population. It is not excluded that the persons who are to remain in the labour market, will go in a different way and just draw a disability pension

But relevant agencies are considering the alternative of raising the retirement age options. In particular we are talking about increasing the minimum seniority required to receive old-age pension.

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