Putin’s Botched Pension Reform
Russia’s crony-capitalist economic model requires an ever-increasing volume of funds to be burned on lavish mega-projects that generate huge profits for a dozen families close to the Kremlin. Now it seems to be pensioners’ turn to make the sacrifices needed to finance the appetites of Russia’s new aristocracy.
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MOSCOW – Modern Russia has never had a proper pension system. It inherited from the Soviet Union both very low retirement ages – 55 for women and 60 for men – and paltry resources to fund state pensions. But the recent decision of President Vladimir Putin and the Duma (parliament) to raise the retirement age will not fix the problem – and may create more serious problems than it solves.