Russia’s Pensioners have Seen Their Incomes Fall from 30 Percent to 25 Percent of Average Pay of Others over Last Five Years, Leaving Them Hardest Hit of All

Paul Goble

            Staunton, Aug.12 – As Russia heads toward another Duma election next month, the age group that has most actively supported Putin and his United Russia Party most actively is hurting as a result of the failure of their pensions to keep up with inflation-driven rises in the wages of working-age Russian, Mikhail Sergeyev says.

            The head of the economics section of  Nezavisimaya Gazeta says that at the time of the last Duma elections, those who had retired were receiving pensions that averaged 30 percent of the pay of those still working. Now that figure has fallen to 25 percent as pay and wages have risen as pensions have stagnated (ng.ru/economics/2026-08-12/1_9558_degradation.html).

            Sergeyev calls this development “a degradation of the level of pension support” and points out that “the older generation ahs turned out to be the chief victim given the  growth of incomes and pay” of working-age Russians, much of the increase of which has reflected inflation rather than increased productivity.

            Politicians across the spectrum including some from United Russia are engaging in pre-election populist promises to do something about this; but given budgetary stringencies brought on by Putin’s expanded war in Ukraine, it is unlikely that they will be able to help the pensioners much given that any new infusion of cash will only fuel more inflation and leave them behind.

            Today’s pensioners may remember, Sergeyev says, that a decade ago, when pensioners were earning 38 percent of what wage earners received, Putin promised that they should be getting 40 percent. But in the years since while he has been in power, there share has not risen as he suggested but fallen further – and there is every sign that this pattern will continue.