Socio-economic aspects of the standard of living of pensioners (On the example of the Republic of Bashkortostan)

Kadyrov Salavat Khismatovich PhD in Economics Senior Researcher, ISEI UFITs RAS 450045, Russia, Republic of Bashkortostan, Ufa, Prospekt Oktyabrya str., 71 salavat-kadyrov91@mail.ru

One of the most painful problems of modern Russian society is the tendency towards gradual and steady aging, a decrease in the number of young and able-bodied people. Against the background of this problem, there is another need to address the issue of material security for those Russian citizens who have reached retirement age and are already unable to work. The state positions the measures it takes to maintain an adequate standard of living as sufficient, which leads to negative assessments of the activities of state structures in the field of social security of the population in general and pensioners in particular ^[1].

The relevance of this study is due to the fact that in our country it is necessary to take measures to stabilize and maintain disabled pensioners, for which it is necessary to clearly imagine how the pensions they receive do not correspond to the real needs of pensioners. In carrying out this study, the method of content analysis of normative legal acts, methods of statistical research, a comparison method, a method of system analysis, as well as a functional method were used, which made it possible to comprehensively assess the existing situation in the region with maintaining the standard of living of pensioners and put forward proposals to improve the situation ^[2].

Global and all-Russian trends indicate an increase in the aging process of the population, which is reflected in the indicators of pension provision. Pensioners make up 28.3% of the region's population. Their main source of income is pensions: insurance (until 2015, labor), funded, state pension provision. It is the poverty of pensioners, due to the extremely low level of pensions, that has become one of the main catalysts of pension reform. But in the first years after the start of the reform, the situation changed extremely slowly^[3].

In the Republic of Bashkortostan, as in other regions of Russia, there is a gradual increase in the share of pensioners in the population: from 22% in 1990, 25% to 28.2% in 2022. At the same time, it should be noted that this trend was disrupted in 2019-2021, largely due to an increase in the retirement age. Thus, pensions are the main source of income for 1150.2 thousand residents of the republic (Fig.1). The main category of pensioners are those who receive an old-age pension. As a result, for the first time, the average size of all three types of labor pensions (old age, disability, loss of breadwinner) exceeded the absolute poverty line established for the Russian Federation as a whole ^[4].

Fig.1. Distribution of the number of pensioners by category (as of January 1, 2022, in %)

The government's policy provides for regular indexation of pension payments in accordance with the growth of consumer prices. The real growth of pensions in the republic is almost at the same level as the national average, and this is quite understandable in connection with the unified federal approach to pension provision in the regions (Fig.2).

Fig.2. The real size of the pension in the Republic of Bashkortostan (in% by 2000)

Considering the dynamics of pension provision, two main trends can be identified, determined primarily by the situation in the economy. High rates of economic growth contributed to a noticeable increase in the real pension amount in the Republic of Bashkortostan in 2000-2013 – 3.4 times. Subsequently, the stagnation of the economy, largely caused by the sanctions regime after the well–known events of 2013, led to a significant slowdown in the pace of the real pension amount for 2014-2022.

 The average pension size is differentiated by regions of Russia to a much lesser extent in comparison with other sources of income (salary – 4.1 times, cash income – 5.5 times): the ratio of the highest and lowest pensions reached 2.2 times at the beginning of 2021 (26.4 thousand rubles in the Chukotka Autonomous Okrug versus 11.9 thousand rubles in the Republic of Dagestan). (Fig.3).

The difference between the level of the average pension in the regions of the Volga Federal District was 10%, with the largest in the Perm Region, the smallest in the Republic of Mari El. In the republic, this indicator is observed at the level of the average for the district.

Fig.3. The average pension amount in the subjects of the Volga Federal District (as of January 1, 2022; rubles per month)

Differences in wages largely determine the differentiation of the amount of pension provision in the context of the main socio–demographic groups of the population. However, it should be noted that the gap gradually decreases over time. So, if in 2012 the average pension in the village was 83.4% of the level in the city, then in 2022 it was 86.6%, respectively. A similar situation is developing in the gender aspect. If in 2015 the average pension for women was 92.7% of the level of men, then in 2022 it was 94.3%, respectively.However, against the background of the general trend of reducing the rich-poor gap over the period under review, extremely high differentiation remains for a third of economic activities ^[5].

The relatively high growth rates of the real pension in our republic were reflected in the improvement of its position in comparison with the average salary: if in 2002 the average pension was 29% of the accrued salary, then in 2022 it was 38.1%. In general, in the Russian Federation, this ratio is noticeably lower and amounted to only 27.4% in 2022, but even if estimated taking into account the expected taxation, this ratio slightly exceeded 30%. The higher value of this indicator in our republic is explained by relatively low wages. At the same time, in countries with developed economies, this ratio reaches 60-80%, and in some countries the average pension amount even exceeds the salary level. According to the surveys conducted, according to the population, the same proportions should be approximately in our country. This implies, respectively, an increase in the size of pensions by 1.5 times or more.

       In recent years, pension growth rates have been observed, albeit not so high, but quite stable. Such an institution as non-state pension provision is being developed. The role of older people in the labor market is quite high and significant. At the same time, serious problems remain, first of all, the availability of basic social services that need to be addressed.   

        However, the main social problem of modern Russian society is not the growth of absolute poverty, but the growth of relative poverty, which is accompanied by a critical polarization of the population in terms of income ^[6]. In the context of the increasing commercialization of the social sphere, monetary incomes increasingly act as the main indicator characterizing the standard of living of the population (Table 1).

Table 1. Level and structure of household income

in 2021.

As the results of the survey show, the level and structure of the formation of monetary incomes of households consisting only of pensioners differ markedly from other socio–demographic groups of the population. Objectively, this is primarily due to the relatively high proportion of pension provision. At the same time, a significant part of the income is generated from other sources, which is almost 40%. At the same time, almost a fifth of income is provided through work. The current situation is quite understandable – the retirement of the average resident of the republic means a decrease in his income security by more than 2 times. As part of the ongoing social policy, the state is trying to compensate for the low level of pension provision – the share of benefits, compensations and other social benefits is relatively noticeable. As can be seen, older people strive to ensure the consumption of food products at the expense of their own production.

With the beginning of market reforms in the general structure of monetary incomes of the population, there was a sharp increase in the share of income of the rich, with an even more significant reduction in the share of income of the low-income ^[7].

"Young" pensioners, as a rule, tend to work in order to compensate for the decrease in their income. In 2022, the share of working pensioners amounted to 14.9% of their total number, while due to the larger supply, the share of urban pensioners is significantly higher than 17.0%, in rural areas, respectively, only 11.8%. The total number of working pensioners amounted to 171.4 thousand people. At the same time, it can be assumed that the share of working pensioners is noticeably higher. So in 2015, the share of working pensioners amounted to 33.6% or 386.0 thousand people. This situation has largely developed due to changes in certain provisions of the legislative acts of the Russian Federation in the field of pension provision, which do not provide for the indexation of pensions to working pensioners. The decrease in the share of working pensioners was also influenced by the increase in the retirement age.

As the results of the survey show, the monetary incomes of households consisting only of pensioners exceed the average per capita income as a whole. At the same time, it should be noted that 8.8% of pensioners in 2022 received a social pension, which is slightly more than 11 thousand rubles.

It is worth noting that along with the increase in the number and proportion of elderly people in the region, there are qualitative changes in this socio-demographic group, primarily related to an increase in life expectancy at retirement age. The primary factor in deciding whether to continue working after retirement is the state of one's own health ^[8].

Objectively, health–related problems are among the most acute for people over the working age - only one in ten assesses their health status as good or very good. The proportion of those respondents who described their health as poor or very poor is quite high – this is almost one in four (Table 2).

Table 2. Respondents' assessment of their health status in 2022

by age groups

(in %)

         For older people, timely medical care is of particular importance, taking into account the relatively higher risks of cardiovascular diseases. According to the results of the survey, this problem has been more or less solved in urban areas, and an ambulance is provided for 75.2% of residents within 20 minutes, and for 24.4% within 21-40 minutes. In rural areas, the situation is much worse – for 15.4% of residents, the wait is more than 1 hour.

Among the reasons for non-conversion, there is such a thing as self-treatment (38.1%). This may indicate a lack of access to medical care and a low level of self-preservation behavior of the population itself. The markedly different standard of living of the population in urban and rural areas, respectively, causes differences in the reasons for not seeking medical help. So, if the townspeople highlight, first of all, qualitative characteristics, then rural ones – the paid nature and the problem of territorial accessibility. This situation is explained by the relatively low standard of living of the rural population in comparison with the urban one – the lag in income indicators by a quarter according to the household budget survey. Optimization of the health care system in rural areas was reflected in the deterioration of territorial accessibility (Table 3).

Table 3. Persons over the working age who did not apply to medical organizations in the presence of a need for medical care

(in %)

The excess of 100% is explained by the possibility of choosing several answer options.

Housing is one of the few advantages of the older generation, inherited, as a rule, since Soviet times. So, if, according to the survey, the size of the total area per household member was 24.3 sq. m., then among families consisting only of pensioners – 38.0 sq. m. This is confirmed by a directly subjective assessment: 96.2% of households in this category do not feel cramped when living. At the same time, 93.3% of the main housing is owned by household members.

The standard of living of the population is largely determined by the prevailing living conditions in their locality. The problems of the older generation vary markedly depending on the place of residence (Fig.4).

Fig.4. Problems of the greatest concern among residents over working age living in urban areas

Objectively, urban residents are primarily concerned about the problems of ecology and housing and communal services. There is a high concern about antisocial behavior, the spread of alcoholism and drug addiction.

Fig.5. Problems of the greatest concern among residents over working age living in rural areas.

For the village, one of the most acute problems is the remoteness of social infrastructure facilities. Especially in rural areas, there is such an important problem for the elderly as the great remoteness of pharmacies. The task of improving the condition of roads and road safety is common for both urban and rural residents (Fig.5).

It should be noted that a number of elderly people, due to their state of health, do not have the full opportunity to produce anything, but each of them is a consumer, and their well-being in this case depends on the social support of the state ^[9].

Table 4. By types of eligible households

for age-related social services

(in %)

As you can see, the well-being of families consisting only of pensioners, based on these criteria, is at a relatively low level. These problems are quite serious: more than 70% of respondents cannot replace furniture that has fallen into disrepair. Social security and rehabilitation are of particular importance for older people. According to the results of the survey, 29.4% of people over the working age need some kind of help from social protection authorities (Table 4).

         Older people need to solve their problems, and among them are the registration of benefits and subsidies (0.8%), pension provision, social services (2.8%), rehabilitation of disabled people (0.9%).

         Objectively, older people are more in need of daily life, any adaptations, and their share is significant - 46.7%. At the same time, it should be noted that almost one in ten is not fully provided with them or is not provided at all. Despite the significantly low incomes of this population group, only 2.3% received these devices completely free of charge and 6% partially free of charge.

Also, a significant proportion of older people need care or social rehabilitation in their daily lives – 41.8%. At the same time, 90.8% were fully provided with them. Obtaining these services is costly – 96.3% of them are carried out at their own expense.

Drug provision is of particular importance for older people, however, the vast majority are not eligible for free or preferential drug provision – 81.9%. It should also be noted that only 11.2% of older people were eligible to receive a free voucher for sanatorium treatment.

Pensioners and older people make up a significant part of the population. The standard of living of this population group largely determines the social development of the republic.

As the results of the conducted surveys show, as a rule, working pensioners are in a relatively prosperous situation. Rural pensioners traditionally find themselves in a difficult situation, not only in terms of pensions, but also in terms of provision of social services.

Objectively, the healthcare system is of particular importance for older people. At the same time, as evidenced by the data of sample surveys, the formation of self-preservation behavior, especially among the male population, is important. While maintaining the existing demographic trends, only 59% of men will live to age 65.

Along with all of the above, it is necessary to regularly monitor the purchasing power of pensions and the total income of pensioners. The development of government decisions to improve the level and quality of life of pensioners should be based on monitoring data on trends in changes in the purchasing power of pensions and other social support measures for pensioners, as well as their differentiation based on the application of social standards of the standard of living of pensioners in the Republic of Bashkortostan ^[10].

Thus, the standard of living of pensioners is one of the most important criteria for evaluating the effectiveness of the socio-economic policy of the state, therefore, its improvement is the main priority goal of a socially oriented state.

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