Responses to the 2018 Pension Reform as a Key Source of Social Tension

Abstract

This article considers the social consequences of changes made to the Russian pension system in 2018. Firstly, the economic, demographic and financial conditions that led to the amendments are outlined. Then, the social tension emerging from this is studied on the basis of the concept of interaction with a changing situation through examining the accounts of various actors about these changes and their expectations of negative consequences. The scale of the changes and the nature of the actors’ interpretations of these changes were
measured using statistical indicators. They were then analysed through pragmatic (utilitarian) and expectations dimensions uncovered in semi-structured in-depth interviews. Statistical calculations show that changes in the pension system were prompt: the number of pensioners in the country increased sharply and at the same time the level of the average pension paid decreased, which led to a decrease in the standard of living of pensioners. At the same time, the population was not ready for these changes, so the reaction was quite sharp. Despite the existence of some utilitarian considerations (opportunities for some actors to be more active in the workplace and positive attitudes about training), the expectations of the majority of people of preretirement age are negative, associated with more uncertainty about the future and insecurity in older age. The social tension formed as a result of changes
in the pension system is created by a combination of negative reactions from the population, such as fear of being out of demand in the labour market, unemployment, lower wages and general income, increased demands from the employer, and the deterioration of physical and mental health.