Putin considers raising retirement age to 65

Taking care of pensioners who are his bedrock of support has been a key feature of President Vladimir Putin’s rule, but as the country’s economy shrinks, the Russian government is considering an idea that has been taboo for 80 years: raising the retirement age.

Since 1932, Russian men have been eligible to retire at age 60 and women at age 55. In numerous professions, especially hazardous ones like mining, people may retire even earlier.

But the budget has come under strain as people have started to live longer. Russian women now have a life expectancy of 76 and men 65.

Faced with a tightening economy thanks to Western sanctions over Ukraine, an oil price that is half of what it was a year ago and a weak rouble, even Putin is cautiously bringing up the subject, which threatens to unleash protests and hurt his high ratings.

“The retirement age is one of the key issues,” the presi- dent said in his annual phonein session earlier this month. In 2016, Russia will have to spend 3 percent of its GDP on pensions — over $50 billion — he said.

International institutions such as the World Bank have long pressed Russia to reform its pension system, but the Kremlin resisted, despite warnings by fiscal hawks that it poses an unbearable burden on the budget.

The recession adds to the problem of an aging population as fewer Russians enter the workforce due to a slump in births in the 1990s.

“The faster we resolve this issue, the better for the economy and for the budget,” Finance Minister Anton Siluanov said recently, proposing to hike the retirement age to 65 for both men and women.

Raising the retirement age now, however, could cause severe discontent ahead of parliamentary polls next year and presidential elections in 2018.

Steadily increasing pensions were a vital campaign issue for Putin in the 2012 election and remain at the core of his social welfare package.

Moscow regularly stresses that preserving social stability is a top priority.

A poll by the independent Levada Center found last month that 79 percent of men and 81 percent of women are against the pension age rise.