The Belarusian government is again raising the issue of raising the retirement age. The majority of the population has a negative attitude towards this. Why?
The issue of pension reform is being raised in Belarus again. Raising the retirement age in the country began more than two years ago. The government was forced to take such an unpopular step, on the one hand, by the demands of the IMF, and on the other, by the difficult demographic situation that has developed throughout the CIS after the 90s. On April 11, 2016, Alexander Lukashenko signed a decree “Improving pension provision in the changing socio-demographic conditions” According to the decree, a gradual but inevitable increase in the retirement age has begun in Belarus. The minimum retirement age will increase by six months each year. If before the reform women retired from 55 years old and men from 60 years old, then by 2022 the retirement age for women will reach 58, and for men - 63 years. In addition, the length of service required to receive an old-age pension also increases by 6 months every six months. He is currently 16 and a half years old. By 2025, the minimum length of service should increase to 20 years.
What people think and what experts say
Raising the retirement age is one of the most unpopular measures, and the attitude of the population to this reform is extremely difficult. According to IISEPS polls, only 19% of the population in 2016 reacted positively to this innovation. 70% of the respondents assessed the government's initiative to increase the retirement age and the minimum length of service negatively. 11% found it difficult to answer.
The reaction of people is understandable. Many consider themselves deceived because the state's social guarantees are becoming more fragile. Most people do not imagine how they will work at full strength, due to health problems, which, after the fifty-year milestone, the vast majority have noticeably weakened. Some say bluntly that the majority of future retirees simply do not live up to the new age retirement age set by the state. This is especially true for men, who, according to statistics, die earlier than women.
An analysis of the situation with the pension reform forces the state to raise the issue of raising the retirement age again. Tensions will re-emerge in pensions within a few years. What is the reason for this?
The increase in population since 2013 is a consequence of the baby boom of the late 1980s. In the coming years, the demographic "pit" will again remind of the problems. In addition, according to UN forecasts, throughout the world in the coming years the number of the disabled population will increase, while the number of the able-bodied population will decline. The “aging” of the world's population is a sad reality to be reckoned with, many experts say.
The global crisis, which is making itself felt more and more often, will only get worse and worse. In addition, experts found that currently, on average, life expectancy in retirement for women is about 25 years, for men - only 15. Supporters of gender equality propose to equalize the retirement age for men and women, setting the retirement age for all at around 65 years old.
Imperfection of economic mechanisms
The extremely irritated reaction of the people is also caused by the fact that the economic mechanisms of the pension reform are not well thought out. Some MPs and experts recommend that the population reconsider their spending, "change their behavior" and start saving up for retirement from a young age. Such suggestions cause ironic smiles in most people. Why?
The transition from a pay-as-you-go pension system to a funded one cannot be completed within a few years. Such mechanisms have been changing for decades. In addition, many people who survived the 90s have negative experiences and do not trust the state's savings institutions, fearing that savings may “burn out” as a result of bank bankruptcies or “dissolve” in the process of inflation.
Long-term deposits are becoming ineffective due to the high level of inflation, and pension funds are underdeveloped, if not extremely weak. In any case, in the opinion of the majority of the respondents, there are no reliable accumulative mechanisms that guarantee the safety of the financial resources set aside for old age in Belarus today.
