Russians label their funds for a comfortable retirement
Pounds and Piasts: Breaking Down Russian Retirement Savings
The tide of Russian financial choices is shifting, particularly when it comes to retirement savings. Here's a look at the popular saving tools, current savings trends, and the projected pension amount needed for a comfortable retirement.
- The Great Russian Savings Shuffle
A majority of Russians (64.3%) plan to save more than one million rubles, with only 2.4% expecting to amass more than ten million rubles. Interestingly, those who are less concerned about savings have almost halved compared to the previous year. Instead of stashing small sums, now 35.7% of Russians aim to save over a million.
- Pension Dreams and Nightmares
Nearly one-third of Russians (34.3%) have commenced setting aside funds for their future pensions. Bank deposits (26.8%) and cold, hard cash (7.8%) are the go-to savings methods, with interest in the Long-Term Savings Program (LSP) on the rise. As of January 2025, over three million contracts have been inked under the LSP, totalling an impressive 245 billion rubles.
However, a joint study by NPF "Evolution" and the Financial University under the government shows that most Russians (89%) aren't making financial provisions for their envisioned pension. Relying on state support (43%) or their future personal savings (27%) are the preferred strategies, while more than half (50%) anticipate aid from relatives and offspring in their twilight years.
- Living the Golden Age: Pension Goals
Many Russians aim for a comfortable pension amount of 110,000 rubles. However, to secure such a payout in retirement, one would have to accrue 639 pension points. With a salary of 230,000 rubles sustained almost for 64 years, this target is far from reachable, as per Anatoly Nikitin, head of the Union of Pensioners of the Moscow Region.
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- The underlined proportion of Russians intending to save over a million rubles has significantly increased, revealing a shift in the country's savings mentality.
- Personal-finance and general-news outlets report that the Long-Term Savings Program (LSP) is gaining traction in Russia, with over 3 million contracts reached by January 2025, totaling 245 billion rubles.
- In contrast to the growing number of Russians setting their pension goals at 110,000 rubles, the union head Anatoly Nikitin states that such a payout at retirement requires accruing 639 pension points – a target seemingly challenging to reach for most Russians.
- Bank deposits and cash remain popular methods for retirement savings among Russians, but more individuals are now looking towards the innovative Long-Term Savings Program (LSP) as a viable option.
- Amassing more than ten million rubles in retirement savings is the ambition of only 2.4% of Russians, yet interpersonal finance has emerged as an essential strategy for Russians planning their retirement years, with over half (50%) anticipating aid from relatives and offspring.
