Sberbank : Sber finds out how Russians see financial independence

According to a Sberbank life insurance study carried out just before Russia Day, 63% of residents of large and medium-sized Russian cities consider themselves to be financially independent. In the opinion of Russians, it is primarily decent wages and savings that provide material freedom.

Sixty four percent of men and 61% of women consider themselves to be financially independent. It is typically 40-50-year-olds who make such an assessment of their welfare - 73% of the respondents in this age group. Novosibirsk, Khabarovsk, and Vladivostok (74%) had the most respondents declaring themselves financially independent.

The respondents are of the opinion that on average people living in Russia attain financial independence at 26 years old. At the same time, the age at which people themselves became or would want to become materially independent is lower, at 24.4 years old. The residents of Izhevsk, Perm, Orenburg, Khabarovsk, Barnaul, Chelyabinsk, Irkutsk, Kirov, Krasnoyarsk, Makhachkala, Voronezh, and Yekaterinburg become or wish to become financially free earlier than others, by the time they reach 24.

Russians believe that financially independent people fully support themselves (indicated by 64% of respondents), live in their own home (55%), have a stable salary that covers all their needs (49%), travel often (32%), are able to help their loved ones (24%), and receive a passive income from investments (15%).

In order to achieve financial independence, it is important to earn a decent wage, as stated by 82% of the respondents. According to Russians, a person's average monthly salary should be around RUB 74,900. The highest evaluated decent wages that would allow a person to be independent were indicated by residents of Moscow (RUB 104,400), St. Petersburg (RUB 98,500), and Vladivostok (RUB 92,700).

One third of Russians (33%) believe that savings are important for financial independence. The highest evaluations of savings necessary for material freedom were given by residents of Moscow (RUB 6.39 mn), Kemerovo (RUB 4.2 mn), and St. Petersburg (RUB 4.12 mn), with a nationwide average of RUB 3.4 mn.

Having real estate to lease is important for 32% of respondents. Owning your own business is important to 25%, and 17% consider the ability to save and invest to be important. Young people (18-30 years old) look to their own business (50%) and income from leasing real estate (42%) more often than others. The older generation (50-60 years old) rely more on a decent wage (89%) and 30-40-year-olds rely on savings (43%).

The survey shows that the vast majority of Russians consider a decent salary to be the foundation for financial independence. A person's evaluation of financial independence reflects their satisfaction level when it comes to their income. It is important that people understand that financial independence is not just the result of a monthly income, even if it fully meets all modern-day needs. A person's financial reserves, savings, and pension plan are also important. The ability to save and set long-term financial goals and achieve them is linked more to financial literacy and discipline than to income size.

Natalya Alymova

Senior Vice President, Head of Wealth Management, Sberbank

The survey was carried out in June 2021 in 37 Russian cities with a population of over 500,000, based on a sample reflecting the socio-demographic makeup of the cities' populations.

Appendix 1.

Proportion of residents of Russian cities that consider themselves financially independent

Astrakhan	61%
Barnaul	68%
Vladivostok	74%
Volgograd	58%
Voronezh	62%
Yekaterinburg	62%
Izhevsk	55%
Irkutsk	69%
Kazan	57%
Kemerovo	64%
Kirov	57%
Krasnodar	61%
Krasnoyarsk	71%
Lipetsk	60%
Makhachkala	61%
Moscow	64%
Naberezhnye Chelny	57%
Nizhny Novorod	58%
Novokuznetsk	65%
Novosibirsk	74%
Omsk	64%
Orenburg	58%
Penza	57%
Perm	58%
Rostov-on-Don	58%
Ryazan	56%
Samara	57%
St. Petersburg	63%
Saratov	58%
Tolyatti	58%
Tomsk	66%
Tyumen	62%
Ulyanovsk	57%
Ufa	58%
Khabarovsk	74%
Chelyabinsk	61%
Yaroslavl	59%

Appendix 2.

Age at which residents of Russian cities achieved or hope to achieve financial independence

Astrakhan	24.3
Barnaul	23.4
Vladivostok	25.0
Volgograd	24.6
Voronezh	23.8
Yekaterinburg	23.8
Izhevsk	23.0
Irkutsk	23.5
Kazan	25.3
Kemerovo	24.5
Kirov	23.5
Krasnodar	24.3
Krasnoyarsk	23.5
Lipetsk	24.5
Makhachkala	23.7
Moscow	27.9
Naberezhnye Chelny	25.4
Nizhny Novorod	25.7
Novokuznetsk	24.6
Novosibirsk	24.9
Omsk	24.0
Orenburg	23.1
Penza	24.5
Perm	23.0
Rostov-on-Don	24.7
Ryazan	25.4
Samara	25.6
St. Petersburg	26.3
Saratov	24.0
Tolyatti	24.8
Tomsk	24.2
Tyumen	24.2
Ulyanovsk	25.0
Ufa	24.6
Khabarovsk	23.2
Chelyabinsk	23.4
Yaroslavl	24.7

Appendix 3.

Average assessment of monthly income required for financial independence according to residents of Russian cities, RUB thousand

Astrakhan	47.4
Barnaul	42.3
Vladivostok	92.7
Volgograd	56.7
Voronezh	55.5
Yekaterinburg	77.2
Izhevsk	60.2
Irkutsk	62.7
Kazan	86.4
Kemerovo	60.5
Kirov	56.1
Krasnodar	79.2
Krasnoyarsk	74.4
Lipetsk	64.1
Makhachkala	72.9
Moscow	104.4
Naberezhnye Chelny	69.7
Nizhny Novorod	68.8
Novokuznetsk	59.7
Novosibirsk	77.3
Omsk	18.4
Orenburg	51.0
Penza	62.0
Perm	78.8
Rostov-on-Don	79.4
Ryazan	45.2
Samara	72.9
St. Petersburg	98.5
Saratov	53.6
Tolyatti	68.3
Tomsk	54.9
Tyumen	68.7
Ulyanovsk	46.4
Ufa	67.1
Khabarovsk	61.7
Chelyabinsk	68.1
Yaroslavl	62.8

Appendix 4.

Average assessment of savings required for financial independence according to residents of Russian cities, RUB mn

Astrakhan	3.38
Barnaul	2.96
Vladivostok	3.66
Volgograd	3.11
Voronezh	2.63
Yekaterinburg	3.30
Izhevsk	3.18
Irkutsk	3.90
Kazan	2.98
Kemerovo	4.20
Kirov	3.41
Krasnodar	2.89
Krasnoyarsk	3.36
Lipetsk	2.69
Makhachkala	3.05
Moscow	6.39
Naberezhnye Chelny	2.24
Nizhny Novorod	2.84
Novokuznetsk	3.66
Novosibirsk	3.70
Omsk	2.58
Orenburg	3.15
Penza	2.96
Perm	3.38
Rostov-on-Don	2.95
Ryazan	2.61
Samara	3.11
St. Petersburg	4.12
Saratov	3.72
Tolyatti	2.54
Tomsk	2.27
Tyumen	3.70
Ulyanovsk	3.19
Ufa	3.53
Khabarovsk	3.55
Chelyabinsk	3.39
Yaroslavl	2.74