Putin under pressure: Do Russians want to live without a pension?

Putin under pressure: Do Russians want to live without a pension?

The Russian government is faced with the challenge of plugging a dramatic financial hole caused by reduced oil trade and major investment cuts. In this context, billionaire and media entrepreneur Konstantin Malofeev proposes abolishing state pension schemes in order to save money. In a historical allusion, he states that in the Tsarist Empire only a limited number of people were entitled to a pension. However, these statements have led to massive protests among the population, who fear that this could be a strategy by the Kremlin to deal with the demographic crisis that Russia is currently experiencing.

In 2023, Russia's fertility rate fell to a low of 1.41, the lowest in 17 years, according to Carnegiepolitika. President Vladimir Putin is pursuing the ambitious goal of increasing the birth rate to 2.3 by 2030 in order to stabilize population numbers. The United Nations estimates that Russia's population will number between 74 million and 112 million by the year 2100, compared to the current population of around 146 million.

Demographic and social challenges

The war in Ukraine, which has now lasted for over three years, has not only led to demographic changes in Russia, but has also had negative effects on society as a whole. Emigration, loss of life and economic sanctions further exacerbate the situation. Latest statistics from Rosstat show a three percent decrease in the birth rate in January and February 2025 compared to the previous year.

Malofeev's proposal to abolish pension provision is not only met with resistance from the population, but is also considered extremely dangerous by experts. Political scientist Maxim Zharov expresses concerns that such a debate on pension provision could be unlawful and extremist, while others suspect that such proposals are intended to prepare the population for possible future plans of the Kremlin. However, the president sees pensioners as an important group of voters whose support he does not want to lose.

Financial bottlenecks and possible solutions

The Kremlin's financial constraints have led to further, sometimes drastic, proposals from various economic experts. Mikhail Matownikov, head of financial analysis at Sberbank, is considering creating funds by skimming interest on savings deposits. In his opinion, these could be enough to finance all unsold housing projects in Russia. Sberbank, which is partially owned by the state, plays an essential role in the Russian economy, especially in times of financial difficulties.

The development of Russian society remains tense, and it remains to be seen what measures the Kremlin will actually implement to address the demographic and financial challenges. While the pension debate likely remains a hot topic, the entire situation could lead to fundamental changes in Russia's social and economic landscape.