Relatively recently, Russia adopted the law “On Improving the Pension System,” which caused a huge resonance among the residents of the country. According to the ongoing reform, the retirement age will gradually increase by five years - for both women and men, until 2024, until the figures are finally established.
But few people know that Russia is one of the countries with the lowest retirement age . And even after this time, this trend is unlikely to change, because the authorities of other countries are also interested in raising the retirement age.
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As follows from the facts described above, everything is known through comparison. We suggest you familiarize yourself with how pension systems work in different countries of the world, what is the life expectancy and standard of living of local pensioners in this article.
In CIS countries
Just a few years ago, in countries that were formerly part of the USSR, the retirement age was the same - 55 years for women and 60 for men. The situation did not change for many years until the authorities of the countries began to think about adopting the experience of Western countries - this affected both the increase in the retirement age and the principle of calculating pensions.
Compared to other countries of the Commonwealth of Independent States, average pensions in Russia are the highest. The local pension system includes old-age, labor and social insurance pensions.
The latter is paid to those who have not accumulated enough experience; to calculate the insurance, a recently introduced point system is in effect, according to which pensions are formed from: a fixed payment, length of service and the number of points. The labor pension is formed as the sum of insurance and funded pensions.
As of 2021, in Russia, women and men retire at 55.5 and 60.5 years. Moreover, according to the latest statistics, their life expectancy is 77.82 and 67.75 years, respectively.
| A country | Retirement age | Average pension size, in dollars | Life expectancy, years | |
| For women | For men | |||
| Russian Federation | 55.5 | 60.5 | 200 | 66.9 |
| Azerbaijan | 60.5 | 63.5 | 176 | 70.3 |
| Armenia | 63 | 65 | 42 | 71.2 |
| Belarus | 58 | 63 | 199 | 74.2 |
| Kazakhstan | 58 | 63 | 199 | 68.8 |
| Kyrgyzstan | 53 | 58 | 75 | 67.3 |
| Moldova | 63 | 63 | 80 | 67.5 |
| Tajikistan | 58 | 63 | 57 | 68.7 |
| Uzbekistan | 55 | 60 | 55 | 69.4 |
| Ukraine | 59.6 | 60 | 115 | 67 |
World pension policy
The governments of many developing European countries are interested in ensuring that older people receive a pension amount sufficient to meet their needs. The main direction of many European pension reforms is to increase the retirement age.
There is a rational grain in this, because many old people, despite their age, have jobs, and, consequently, a constant source of income.
Many employers prefer to keep pensioners on their staff rather than young employees, as they have extensive work experience and work skills honed over the years.
In European countries
The countries of the European Union are famous for their high standard of living for retirees. Local residents live longer and earn more as a result of a developed economic system.
The EU has the highest wage replacement rate with pensions, that is, the percentage of previous wages that pensioners can count on after retiring.
According to the International Labor Organization (ILO) convention, it cannot be lower than 40%. For example, in Spain it is 80%. In Russia, for comparison, it is only 29.8%.
Among non-EU countries, Switzerland has the highest pensions - a minimum of 1100 francs or 1800 US dollars per month. The replacement rate is at least 50%, which means that upon retirement, citizens can afford almost the same quality of life.
| A country | Retirement age | Average pension size, in dollars | Life expectancy, years | |
| For women | For men | |||
| Austria | 60 | 65 | 1500 | 81.4 |
| Belgium | 65 | 65 | 1200 | 81.5 |
| Bulgaria | 61.2 | 64.1 | 577 | 71.4 |
| Great Britain | 65.5 | 65.5 | 700 | 81.2 |
| Hungary | 63.5 | 63.5 | 400 | 73.1 |
| Germany | 65.7 | 65.7 | 850 | 81.2 |
| Greece | 67 | 67 | 700 | 82.1 |
| Denmark | 65 | 65 | 2800 | 80.8 |
| Ireland | 66 | 66 | 1000 | 82 |
| Spain | 65.5 | 65.5 | 1190 | 83.4 |
| Italy | 67 | 67 | 580 | 83.4 |
| Cyprus | 65 | 65 | 740 | 80.8 |
| Latvia | 63.9 | 63.9 | 300 | 70.1 |
| Lithuania | 62.4 | 63.8 | 408 | 74.7 |
| Luxembourg | 65 | 65 | 3000 | 82.1 |
| Malta | 62 | 62 | 1500 | 82.4 |
| Netherlands | 66.4 | 66.4 | 800 | 82.1 |
| Poland | 60 | 65 | 538 | 78.5 |
| Portugal | 68 | 68 | 500 | 81.9 |
| Romania | 60.11 | 65 | 446 | 72.5 |
| Slovakia | 65.4 | 65.5 | 502 | 77.4 |
| Slovenia | 59.8 | 60 | 500 | 81.2 |
| Finland | 63 | 63 | 1781 | 81.7 |
| France | 62 | 62 | 700 | 82.5 |
| Croatia | 62 | 65 | 300 | 78.3 |
| Czech | 62.8 | 63.4 | 680 | 79.2 |
| Sweden | 61 | 61 | 1100 | 82.7 |
| Estonia | 63.5 | 63.5 | 656 | 78.6 |
What is the pension in Arab countries?
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Every working UAE citizen can count on pension payments in the future. The pension is formed through certain deductions from the citizen’s salary. The retirement age for women is 55 years, and for men – 60 years. The minimum pension is 90 thousand rubles per month. The average pension in the UAE is 175 thousand rubles per month.
The size of pension payments varies greatly from country to country. But it is worth considering that prices for products, real estate, and so on also vary. Therefore, it is worth calculating the level of pensions based on the principle of how much can be bought for a given amount in this country.
Thus, Germany, Denmark, Israel, USA, UK and Japan are countries with high pensions. Because retirees can afford to travel around the world, in addition to obligatory expenses. To be fair, it is worth noting that pensions abroad are many times higher than in Russia and the countries of the former USSR, and most of Asia.
In eastern countries
The states of the Persian Gulf are rightfully considered the most wealthy, which include: Qatar, Bahrain, Saudi Arabia, Kuwait, Iran, and the United Arab Emirates. With a decent standard of living, they also have high life expectancy rates, and have the right to retire starting at the age of 40, continuing to live on the highest allowances from the state - from $2,000 monthly .
In the DPRK, according to rumors, pensions are only $7 per month. People work in the interests of the state all their lives and receive practically no free money in return. The situation is similar in Thailand, where only military pensioners and elephants can count on retirement.
In some other eastern countries there is no pension at all - for example, in Iraq, Afghanistan and Pakistan.
| A country | Retirement age | Average pension size, in dollars | Life expectancy, years | |
| For women | For men | |||
| Bahrain | 55 | 60 | 3000 | 77.2 |
| Vietnam | 55 | 60 | 100 | 71.2 |
| Georgia | 65 | 65 | 80 | 69.2 |
| Israel | 62 | 68 | 1500 | 82.8 |
| India | 60 | 60 | 30 | 68.2 |
| Indonesia | 58 | 58 | 140 | 69.4 |
| Iran | 55 | 60 | 500 | 72.7 |
| Qatar | 55 | 60 | 2000 | 80.1 |
| Cyprus | 65 | 65 | 800 | 80.6 |
| Kyrgyzstan | 53 | 58 | 75 | 71.2 |
| China | 55 | 60 | 210 | 76.5 |
| Korea | 60 | 60 | 300 | 82.8 |
| Kuwait | 50 | 55 | 2500 | 75 |
| Malaysia | 60 | 60 | 500 | 73 |
| UAE | 49 | 49 | 2800 | 77.8 |
| Saudi Arabia | 40 | 40 | 2000 | 73.8 |
| Singapore | 62 | 62 | 400 | 83.5 |
| Syria | 54 | 60 | 500 | 66.6 |
| Thailand | 55 | 55 | 300 | 73.2 |
| Türkiye | 58 | 60 | 1300 | 77.4 |
| Japan | 65 | 65 | 700 | 84.5 |
Anti-rating: the lowest pensions
There are three main types of pensions in Russia: insurance. social and cumulative. In addition, for certain categories of citizens of the Russian Federation, a disability pension can be paid, based on length of service, in connection with the loss of a breadwinner and for special distinctions before the fatherland. For clarity, an analysis of the situation related to retirement in different regions of the world should be carried out.
The retirement age around the world is subject to frequent changes. According to the OECD, already 30 of the 37 different countries that participate in this organization are actively engaged in adjustments to the retirement age.
The French pension system is part of the general social insurance system, which is recognized by experts as one of the most complex and multifaceted in the world. The downside to some of the complexity of pension rules is the ability to protect yourself from the most unexpected situations and provide for the most favorable way to receive pension payments.
In general, despite the significant economic recovery that the state has shown over the past 30 years, most issues regarding pensions remain unresolved. The average pension payment in the Chinese state is only $80. This situation is due to the large number of old people in China; this nation is recognized as aging.
My friends are both retired, and their only healthy son (he is about 50 years old) has not worked for 25 years. And there are a lot of them, a quarter of the population.
Before the start of the reform in the country, the standards were set at 65 years for the male population and 60 for the female population.
The governments of many developing countries of the European Union are interested in ensuring that pensioners receive payments that are sufficient to meet all needs.
In African countries
In many African countries, pensions are simply not available. There is no pension system as such, and most citizens can rely only on their own strength, working throughout their lives for the benefit of the economy of agricultural countries.
According to the International Labor Organization, about 20-25% of Africans receive pensions . For example, the pension system in Angola is more or less developed, where there are a large number of state and non-state funds, as well as banks, which make it possible to preserve and increase the pension capital of local residents.
IN THE USA
The US pension system has long been overgrown with a large number of myths. Some believe that pensions in the west of the country are prohibitively high, others believe that even a huge (relative to ours) pension barely exceeds the subsistence level. Its average value for specialists is ~$1500.
Americans retire at age 67, regardless of gender , and their average life expectancy is 78.6 years. At the same time, the survival rate is constantly decreasing.
In the USA, as in many other countries, pensions are formed through contributions to the Pension Fund - both the working citizens themselves and the state are required to make them for them in a 50/50 ratio.
Along with this, voluntary pension insurance funds are also popular - public and private, created so that every American has the opportunity to accumulate a sometimes very impressive increase to their basic pension.
This is a kind of analogue of a Russian savings account - pensions are indexed annually and allow you to receive even more in the future than you actually saved.
Pension in Norway
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This country is an excellent example of how a pension can be high even without any payroll deductions. The minimum pension in Norway is $1,500 (100 thousand rubles), and the average is $2,300 (150 thousand rubles).
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This is achieved through the export of oil, which this Scandinavian country is rich in. The Norwegian sovereign wealth fund (Government Pension Fund Global, GPFG) receives profits from the sale of oil and gas, which is used for investment. The Fund has the right to invest money at its discretion in real estate and securities, not only in Norway, but also abroad. At least 70% of the funds available to the fund are always invested in shares. GPFG's assets exceed $1 trillion, with returns ranging from 6% to 14% in recent years. Citizens of the country with at least 40 years of experience have the right to full pension coverage. Norwegians can retire at age 67, regardless of gender. Contributions to the state insurance system range from 8% to 11.5%. Their size depends on whether the person is employed or self-employed.
Norwegian citizens can contribute to pension savings individually or participate in occupational pension schemes. In this case, the employer participates in financing together with his employee.
In Canada
In Canada, all residents of the country who have lived there for at least 10 years after reaching adulthood are paid an old age pension (The Old Age Security). It is paid to almost everyone without exception, and its size almost does not depend on accumulated experience and other conventions that are relied on in other countries.
The maximum OAS amount is about $500 per month. At the same time, although it is taxed, its amount is revised four times a year in order to protect the income of pensioners from inflation. It forms the basis for other types of pensions.
For example, non-working pensioners or those receiving low incomes are entitled to receive a federal guaranteed income supplement, the amount of which depends both on the income of the citizens themselves and on the income of their husbands/wives. Usually it is no more than $800.
In Canada, as in Russia, deferring retirement up to five years guarantees a gradual increase of 0.6%. Thus, until you need your pension, it grows without your direct participation.
Canadians can afford to retire later than expected, with an average life expectancy of 82 years and an expected retirement age of 65 years.
Pension in Italy
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Italy is one of the few countries that realized their mistake in pension reform and took a step towards its citizens. Strict requirements adopted in 2011 have been relaxed. Italians can retire at 67 years and 7 months, but recently an amendment to the law was made that allows them to retire earlier. The social pension in Italy is 448 euros (32 thousand 900 rubles). Those with 25 years of experience can already count on 542 euros (39 thousand 800 rubles). For men who have worked for 42 years and 10 months, and for women who have worked for less than a year, it is possible to receive a labor pension. Its average size is 71% of average earnings.
The pension reform of 2011 implied a transition to a funded system. Workers make monthly contributions to the National Institute of Social Security (INPS) or to professional funds. Funds from these funds are used not only for pension payments, but also for sick leave, as well as for unemployment benefits, which can be paid for 2 years. These monthly payments are calculated using complex formulas that change frequently. If a person is employed, the employer makes contributions for him. Often the monthly payment is 35−40% of the employee’s salary.
