Keyword: «replacement rate»

The article presents general theoretical and practical aspects of reforming the pension system of the Russian Federation. It is pointed out the fallacy and haste of raising the retirement age. Critics of the unpopular idea adopted by the first reading in the State Duma are criticized. The main statistical data on budget dynamics are presented, the mechanism of pension provision and the financial management of the fund are critically analyzed, and some measures are proposed to solve the problem.

The level of pension provision for citizens in modern Russia is an urgent economic and social problem. The long-term reform of the pension system as goals defines the improvement of living standards and social protection of the country's population. Many provisions of the ongoing reforms are controversial among economists, politicians and pensioners. The work reflects the main directions of reforming insurance pensions in the Russian Federation carried out in 2015. The indicators «the ratio of the average pension to the subsistence minimum of a pensioner» and «the replacement rate of wages» for the period up to 2020 were calculated; they were compared with the values in European countries. The results obtained indicate the insufficient efficiency of the ongoing pension reform.