President Vladimir Putin has announced significant changes to pension payouts following the recent rise in inflation rates, which peaked at 9.5% last year. During an economic conference held via video link on January 22, 2025, Putin emphasized the government’s commitment to social equity and improving the welfare of low-income citizens.
Putin mandated the government to adjust social security benefits and pensions to align more closely with current economic realities, asserting, “I find it right and fair to also make additional indexation concerning military pensions, taking the actual price growth last year, also retrospectively – from January 1, 2025.” He directed the government to reassess military pensions considering this inflation rate, ensuring these adjustments take effect from the beginning of the month and benefiting pensioners by February 2025.
This directive stems from the recognition of last year’s inflation exceeding predictions set by the Central Bank, which had initially forecasted only a 7.3% increase for 2025. Putin noted the necessity to react to the actual circumstances affecting everyday citizens, particularly the elderly on fixed incomes who have been increasingly squeezed by rising costs.
The adjustments will see ordinary pensions increased by approximately 450 to 600 rubles, whereas military pensions will rise significantly more, from 1,700 to 2,000 rubles. This additional increase follows previous indexations commencing on October 1, 2024, which raised military pensions by just 5.1%. The disparities highlighted the need for the new adjustments, as those receiving military pensions felt the impact of the lower than expected increase juxtaposed against the real inflation.
“The supplemental payments will allow citizens to receive sums due to them timely,” Putin insisted. The proposed indexations are part of broader efforts to support social stability amid economic challenges aggravated by inflation.
Following Putin's orders, all pensioners can expect these benefits by February, which is aimed at offsetting the challenges they face due to the rising costs of living. The government's swift actions are positioned as necessary to maintain the trust and assure the well-being of pensioners across Russia.
The economic conference underscored not just the immediate adjustments to pensions but also the foundation for future economic policies aimed at supporting the most vulnerable segments of Russian society. It remains to be seen how these policies will adapt as inflationary pressures continue and what measures will be taken moving forward to secure the livelihoods of Russia’s aging population.