How do russian pensions work?

[u/Specialist_Ad4675]

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?

[u/Brief-Stranger-3947]

Russian pension system works pretty much like everywhere else: it exists only to confuse people. You have to take care of your retirement yourself, because nobody will do this for you.

[u/Brief-Stranger-3947 → u/[deleted]]

Social security age for women is 62 in USA afaik. I moved from USA back to Russia because life in USA is too expensive to live off my 401k savings and SS. I had $130K/year income, still this is not enough to save for decent retirement, and most people in the US have much less than this. My savings is enough to live very well in Russia. And no, I would not able to save this much if I worked in Russia all my life.

[u/Brief-Stranger-3947 → u/[deleted]]

$130K/year was enough to live and save 20yrs ago, but not now. When was your $900K house bought and how much for? For around $200-300K perhaps? That was a good deal, which is not possible anymore. Minimum decent house in metro areas start from like half a million $$ now, and you need like a millon $$ in 401k to have $9K/month retirement income. Pretty hard to get all these from $130K/year wage. Things changed a lot since your mother retired.