Russians label their financial reserves aimed at retiring
Russians eye big savings as many plan to hoard more than a million rubles, with only a tiny fraction aiming for over 10 million. The number of individuals who don't fret about their savings has almost been halved, dropping from 70% planning less than a million last year to just 35.7% today.
A substantial 34.3% of Russians have started saving for their pension. The most popular methods are bank deposits (26.8%) and good old-fashioned cash savings (7.8%). The long-term savings program (LSS) is gaining traction, noted SberNPF. According to the Central Bank, around 3.3 million contracts had been signed under the LSS by January 2025, with a whopping 245 billion rubles attracted.
A joint study by NPF "Evolution" and the Financial University under the government revealed that a staggering 89% of Russians don't save to secure their ideal pension. About 43% of respondents trust the state pension, while 27% expect their future savings, including those in non-state pension funds (NPFs). Over half of the respondents expect help from family and children in their golden years.
Russians envision an ideal pension of 110,000 rubles, but achieving this in retirement demands 639 pension points. This is feasible only if one earns a salary of 230,000 rubles for a staggering 64 years, as explained by Anatoly Nikitin, a Moscow Regional Duma deputy and the head of the Union of Pensioners of the Moscow Region.
For those aiming high with over 10 million rubles in savings, there are strategies at hand. Long-term savings programs (LSS) are a solid starting point, with Individual Investment Accounts (IIAs) offering yearly tax rebates. Launched in 2024, these LSS programs have attracted a massive 200 billion rubles through around 3 million agreements. Other attractive options include Savings Certificates, insured up to 2.8 million rubles for irrevocable deposits over three years.
Non-State Pension Funds (NPFs) are another route for building retirement savings. While not solely focused on amassing over 10 million rubles, NPFs provide a structured long-term savings framework that can be part of a broader savings plan. Voluntary pension contributions and securities investment are other strategies to consider, having shown increased interest among Russians. Lastly, traditional bank deposits remain appealing for long-term savings.
Combining these strategies, making consistent contributions, and leveraging the tax advantages of Individual Investment Accounts could help build savings over 10 million rubles. Diversifying investments across various asset classes also aids in mitigating risk and potentially enhancing returns in the long run.
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- A significant number of Russians are increasingly using long-term savings programs (LSS) as a solid foundation for accumulating substantial savings, having attracted over 200 billion rubles in less than a year since their launch in 2024.
- Non-State Pension Funds (NPFs) can also be a valuable route for building retirement savings, offering a structured saving framework that can form part of a larger, comprehensive savings plan, even for those aiming to amass more than 10 million rubles.
- For a personal finance-focused approach, individuals may consider various strategies, such as investing in securities, making voluntary pension contributions, or diversifying investments across different asset classes to facilitate risk mitigation and potentially improve long-term returns.
- To achieve savings of over 10 million rubles, it's important to take advantage of the tax benefits provided by Individual Investment Accounts (IIAs), consistently contribute to your savings, and diversify investments to reduce risk while enhancing potential returns in the long term.
