Pension reform hits over- 50s Russians

Moscow, Sept. 7: When 52- year old accountant Marina Grigoryeva was laid off this year, she figured that at least she would be eligible for a state pension in three years’ time. But measures announced by President Vladimir Putin last week mean that Grigoryeva, who has been looking for a job for over six months, will have to wait eight years instead.

A planned hike in the retirement age yanks away the safety net for millions of Russians in their 50s, core Putin supporters who struggle to hold down a job, let alone find a new one, and have come to rely on pensions as a meagre but secure source of income at a time of economic uncertainty.

“You can’t get by on the benefits at all,” said Ms Grigoryeva, who has worked for the Moscow City Telephone Network for nearly 30 years.

She is entitled to 5,000 rubles ($ 73) a month in unemployment benefits, which is half what the government says is the minimum subsistence level.

And it’s only a tenth of the average salary in Moscow, where she lives.

A recent opinion poll shows Mr Putin’s approval ratings crashed this summer following the announcement of the pension reform, while an increasing number of Russians say they are ready to take to the streets to protest it. The president even made a televised address to the nation to explain the need for a higher retirement age and announce some concessions.

Mr Putin had initially tried to keep a distance from the politically sensitive proposal. It was announced instead by Prime Minister Dmitry Medvedev in June — on the day the World Cup kicked off in Russia.