Forecasting the Effects of Raising the Retirement Age on Russia’s Demographic Struc

The paper assesses the possibility of raising the retirement age to mitigate the effects of ageing on the pension system of Russia. The authors make demographic forecasts based on hypotheses about the presence of global demographic trends in population reproduction and manifestations of development features specific for Russia. The demographic forecast is based on the age shifting method according to three scenarios. The forecast takes into account the provisions of a draft law that has already been approved and that provides for a gradual increase in age limit for civil servants, both men and women, to 65 years (by six months each year). The following assumption is made for the purpose of studying the effects of raising the retirement age to 65 years for all categories of Russian citizens. The increase in the retirement age begins in 2016 at the rate of 6 months per year, and it will end for men in 2026 and for women – in 2036. Thus, by 2036, the official retirement age will be 65 years for both sexes. The resulting forecasts show that population ageing in Russia is an inevitable process. Depending on whether demographic processes are in line with global trends or whether certain specific Russian features of development are revealed, ageing process will occur in the first case – “from above”, in the second case – “from below”. The forecast has confirmed a well-known paradox that if the situation regarding the decline in mortality is improved further, as has happened in recent years, then the pace of ageing that negatively affects the balance of the pension system will be even higher, at least in the medium term. Forecast calculations have shown that, first, demographic burden on the working population will continue to increase under any demographic development scenario implemented in Russia, and most significantly, under a scenario that describes a successful demographic policy. Second, the number of retirement age women is a significant potential reserve for decreasing the demographic burden on able-bodied population. It appears that raising the retirement age is feasible but it should be carefully prepared so as to be implemented gradually and accompanied by several additional measures

Keywords

population ageing, retirement age, pension system, demographic forecast, global demographic trends and russian peculiarities