Vice-Chairperson of the Central Bank said that it’s far too late to support pensioners


The Government doesn’t owe anybody a thing

Speaking at a meeting of the Federation Council Committee on Economic Policy, Sergei Shvetsov, the First Vice-Chairperson of the Central Bank, said that it was too late to provide benefits for existing pensioners. Everyone, according to him, should save up money to live on once they are retired. Shvetsov explained that it might be investments in private pension funds, insurance companies, and real estate purchases.

Also, the Vice-Chairperson of the Central Bank said that the system whereby the State provides pensions for the elderly who has retired is Socialism, while under Capitalism, a person himself or herself has to take care of their future.

There are two major developments in the statement of an official of such a high rank. First, the authorities openly claim that pensioners can not expect any new support measures. Of course, people will get a tiny little piece of the pie in the pre-election period, but that’s all. Elderly retirees are expected to meet a gradual decline in subsidies, withdrawal of benefits, and a decrease in the size of pension indexing. Secondly, it is finally becoming clear that the Government has adopted the approach of eliminating the current pension system. Sooner or later, the very concept of the age of retirement and retirement itself will be done away with, and people will have to put their own money aside out of pocket to prepare for their decent old age.

Adjusted increases for social benefits and allowances don’t even exceed the inflation rate. So, in January 2021, pensions were indexed by 6.3%, while the increase in consumer prices for goods and services amounted up to 5.19%, and food products prices increased by 7.57%. But that’s not all. In effect, the best-case scenario is there is no raise in pensions, and most likely – pensions will have a decline in real terms. Meanwhile, when discussing raising the retirement age, the authorities said that after that, an annual increase in pensions would be provided in Russia by an average of 1,000 rubles. As now we can see, this was just a lie, designed to somewhat alleviate widespread social discontent.

The authorities thus formally refuse any social security and welfare for working people. At the same time, everyone has been officially told to take care of themselves and not expect help from the State under Capitalism. Actually, it’s a sound piece of advice. As a matter of fact, workers should not hold out great expectations for the State.

They only have to understand the need to take responsibility and to count on themselves above all, to fight for their interests in order to create their own socialist state, and this state will endeavor to ensure a decent life and social stability for its citizens of any age.