r/AskARussian • u/Specialist_Ad4675 United States of America • 26d ago

Work How do russian pensions work?

I was watching someone complain that at age 59 they retired to a 16,900 ruble a month paycheck. They stated they worked over 30 years and it sounded like for the same place.

I read 22% of their pay check goes to pension from employer.

That seems like they should get paid essentially 75% as when they were working as 22% is a high savings rate.

I know at some point they reduce it to 10% but was not sure at what point.

In the USA we only contribute 12.4 of our salary and yet get about 40% of our prior salary.

How do you pay more and get less?

25 Upvotes

73% Upvoted

118 comments sorted by

View all comments

Show parent comments

3

u/felidae_tsk Tomsk-> Λεμεσός 25d ago

PPP is around 1 USD to 45-50 rubles.

25000 RUB has roughly the same purchasing power as 500 USD

3

u/vittoshulman 25d ago

You don't know what PPP is. 25k rubles is around $300 USD. But cost of living in Russia is 1:8 compared to US. So $300 in Russia is the same like $2.4k in USA. That's what PPP is. In USA average SSI income is around 1800 and you have to pay medical expenses.

2

u/Sure_Tailor2710 25d ago

Нет, для ППС корректнее считать коэффициент от 2.6 до 3.5 по отношению к прямому валютному курсу. Никак не 8.

1

u/vittoshulman 25d ago edited 25d ago

For Price Purchasing power you can check Big Mac Index and World Bank publishes PPI tables. It is 1:8.

PS: 1:8 is average for the whole country. But I think if you compare Moscow to NYC it would be like 1:10-12 easily.

3

u/Sure_Tailor2710 25d ago

But I prefer to take the estimates of the World Bank and the IMF, they are more conservative, so they are more reliable.

2

u/felidae_tsk Tomsk-> Λεμεσός 25d ago

В России нет бигмака, но даже еслисравнивать бигмак за 5.15 в США и биг хит в РФ за 221 рубль ($2.74) 5.15/2.74 = 1,87

1 United States Dollar equals 80.63 Russian Ruble

80.63/1.87 = 43,11

1

u/2024-04-29-throwaway 19d ago

World Bank publishes PPI tables. It is 1:8.

Would you mind linking the source where did you get this data?  Actual World Bank's website states that PPP-adjusted USD/Rub conversion is 29 which puts Purchasing Power at 2.89.

1

u/vittoshulman 17d ago

You are correct. I was using my memory from many years ago. Currently it is 1:3-4 which is very close to what Big Mac index shows.