The age profile of Russians’ real cash incomes for 2021–2025 has undergone significant changes, both in absolute terms and in terms of income distribution across age groups. Alexey Zamnius, Researcher at the Gaidar Institute’s Mathematical Modeling of Economic Processes Department, analyzed data on the real cash incomes of the Russian households during this period.
Overall, nearly all population groups showed income growth, but the intensity of these changes varied by age. The most pronounced growth was observed among young adults (ages 18–24) and pre-retirement groups, whose incomes rose by 15–20% compared to 2021. Middle-aged groups (25–55 years old) showed more moderate growth in the range of 10–15%, while employed retirees found themselves in the least advantageous position: their incomes grew by approximately 5%. At the same time, in 2022, most age groups experienced a decline in income linked to economic instability and inflationary pressures; however, in 2023, incomes recovered and exceeded pre-crisis levels, with the exception of the 25–35 age group, which did not fully regain its footing.
An analysis of aggregate income, including wages for the employed and pension payments, reveals not only absolute changes but also structural shifts in the distribution of income by age. Young people have strengthened their position relative to other groups, while those over 60, most of whom are retirees, have seen a relative decline in income compared to peak age cohorts. This reflects a redistribution of economic benefits in favor of young workers, whose skills and flexibility have proven more in demand under new economic conditions.
The traditional pattern of the age-based income profile, in which aggregate income peaks in middle age and gradually declines toward retirement, is gradually transforming. A more level income trajectory is now observed, with the strengthening of young people’s positions and moderate growth among middle-aged groups. The differences between working retirees and young people are particularly telling: the former, relying primarily on government transfers, find themselves in the least advantageous position, while young people gain a head start, which lays the foundation for long-term well-being.
Taken together, the data point to the emergence of a new age-based income stratification. These changes reflect both macroeconomic fluctuations and the influence of external factors, as well as the transformation of the labor market, where flexibility, mobility, and the ability to adapt quickly are valued. For social policy, these findings underscore the need for a differentiated approach to supporting different age groups: young workers are given opportunities for growth, while retirees, especially those still employed, face a relative decline in well-being.