Details of pension indexation in 2024 have been revealed: who, when and how much will receive

The year 2024 has not yet arrived, but the main milestones of pension payments relating to the huge army of Russian pensioners – in total there are over 41 million people – are already known. In any case, the State Duma approved the corresponding bill in the first reading. The document was introduced by the Russian government along with the draft of the new federal budget. What kind of indexation awaits Russian pensioners in 2024, when exactly and for what amounts, MK sorted out with the help of experts.

Every year, Russian legislators index pensions for all categories of Russians on well-deserved retirement, except for working pensioners – indexation has been frozen for them since 2016.

The coming year 2024 will not be an exception: the state has already determined the timing and amount of increased payments for pensioners. So: from January 1, an indexation of 7.5% awaits citizens receiving an old-age pension. This is the largest social group of pensioners, numbering 32 million people. According to the government’s plan, this 7.5% should compensate the elderly for the increase in inflation for the current 2023.

According to the bill adopted in the first reading by the State Duma, the cost of the pension coefficient (point) next year will increase from 129.46 rubles to 133.05 rubles. The size of the fixed payment to the old-age insurance pension from January 1, 2024 will be 8134.88 rubles. As a result of the recalculation, the average pension benefit for non-working insurance pension recipients will increase by 1,572 rubles and amount to 22,605 rubles. And for non-working recipients of old-age insurance pensions, the increase will be on average 1,631 rubles – after the increase, the average pension will be 23,449 rubles. Let us remind you that pension recalculation is carried out automatically. There is no need to contact the Social Fund to receive the payments due.

Note that also from January 1, payments to several more categories are indexed by the same 7.5%: recipients of survivors’ pensions who have a disability group, military pensioners who receive a second pension from the Social Fund of the Russian Federation.

From February 1, 2024, payments will be indexed by 7.5% to: veterans of the Great Patriotic and local wars, citizens who received disabilities during the liquidation of the accident at the Chernobyl nuclear power plant; Heroes of Labor of the Soviet Union and the Russian Federation.

From April 1, indexation of 4% awaits citizens receiving a social pension. There are about 3-4 million of them in Russia – these are those who have not earned length of service and points to receive an old-age insurance pension and for whom employers have not made any contributions to the Social Fund throughout their lives. Therefore, their indexation percentage is significantly lower – so to speak, on a residual basis. According to preliminary calculations, the cost of living for recipients of social pensions will increase to 12,860 rubles.

On August 1, the turn will come for those pensioners who continue to work. As mentioned above, general indexing does not concern them. But they will be calculated individual coefficients that increase their payments. The maximum increase provided for this social group (approximately 7-8 million people) is 3 points, which is equivalent to approximately 350 – 400 rubles per month.

Finally, on October 1, payments to military pensioners, as well as to persons who have a status equal to them (citizens who served in the Russian Guard, the Ministry of Internal Affairs, the Ministry of Emergency Situations and other law enforcement agencies) will be increased by 4%.

Note that additional budget expenses for increasing pensions in 2024 will amount to 234 billion rubles.

MK asked experts – economists and specialists in social issues – to comment on legislative changes related to the indexation of pensions in 2024.

Mark Goikhman, analyst at Capital Skills Financial Academy:

“The planned increase in pensions corresponds to the expected average inflation for 2023. According to the recent October forecast of the Central Bank of Russia, it will be 7-7.5%. The Ministry of Economic Development agrees with this, expecting an increase in prices “at the upper limit” – by 7.5%. Moreover, such calculations include an advance even over the current level. After all, in October 2023, consumer inflation amounted to 6.7% on an annualized basis, according to Rosstat data published on November 10. At the same time, goods and services, mainly consumed by pensioners, tend to rise in price more than the average Rosstat consumer basket. It is therefore likely that the real purchasing power of pensions will be lower than in 2023. But the situation may level out somewhat if inflation during 2024 drops to 4-4.5%, as the Central Bank of the Russian Federation plans.

The increase in payments is ensured by budget revenues included in the plan. In 2024, its deficit is expected to be reduced to 1.6 trillion rubles, according to the bill adopted by the State Duma in the first reading. This is much lower than the planned deficit of 2.9 trillion rubles. for 2023.”

Andrey Loboda, director of communications at BitRiver:

“Indexation of pensions should, of course, compensate for the impact of inflation on the cost of living. However, the effectiveness of this compensation depends on how accurately pension increases reflect changes in consumer prices. Inflation at the end of this year is expected to be 7.5%, which is how pensions will increase. Quite fair and worthy.

Therefore, indexation of pensions in a deficit budget environment is a complex task that requires a balance between social obligations and the financial stability of the state. In such a situation, the decision on the scale of indexation depends on several factors.

First of all, we are talking about economic stability. The level of inflation and the general economic situation influence the decision on the possibility of indexation, and a deficit budget may even limit the ability to increase spending. In general, balancing interests between ensuring a decent standard of living for pensioners and the financial stability of the state often requires the authorities to make compromise decisions.”