Russians refuse to save up for retirement

Credit: Alexandr Demyanchuk |RIAN

Seventy-five percent of big city residents are not making any retirement savings. If they save money at all, these funds are deposited in banks or invested in securities, according to a Raiffeisenbank survey.

Experts found that the majority of city residents are not building a retirement fund for themselves and have no intention to do it later in life. Only 8.3% respondents said that they are making savings. Another 16.3% said that they do set some money aside but only once in a while. Forty percent said they want to start saving up for retirement but their income is not enough for that, RBC reports. This is due to extremely low salaries in the country as half of the population makes less than RUR 34K ($533) per month.

At the same time, respondents believe that half of their income after retirement will come from the non-contributory part of pension funded by the government. Still, hardly anybody expects to rely on it in the future. Only 15.4% Russians fully understand how the pension system really works while for 55% many aspects of pension calculations remain unclear.

Interestingly, Russians have exaggerated expectations of an income that would allow them to have a comfortable retirement. Most of the respondents need between RUR 80K and RUR 90K ($1,255-$1,400) per month, which is many times higher than the current pensions.

Previous ArticleNext Article