After work: over half of Russians want to save for retirement with their employer

According to a SberNPF and Rambler&Co survey of 2,300 people nationwide, over one-third of Russians are of the opinion that their employers, together with the state, should ensure a decent retirement income for them. Over half of the respondents are willing to save for retirement together with the companies they work for.

It is not enough for a pensioner to live in their own apartment, eat square meals, and have access to quality healthcare, according to Russians. In addition to this set of requirements, approximately one-third of respondents (32%) would also like to be able to travel and 22% would like to pursue a hobby. Access to entertainment and cultural values is important to one out of five respondents (21%). Ten percent of respondents are prepared to go on working and do sports, while 5% are ready to pursue an education.

Around 44% of Russians believe that an income of RUB 45,000-50,000 per month is enough to provide for all these benefits. Only 7% of respondents are willing to make do with a lesser amount. A third of people surveyed (33%) require a minimum of RUB 50,000-70,000 per month for a comfortable retirement, while 16% would settle for no less than RUB 100,000 per month.

Approximately one-half of respondents (49%) are convinced that it is the state that should ensure such an income for pensioners. The others are counting on several sources: 36% of Russians believe that their employers should look out for their welfare in old age together with the state, while only 1% believe that it is solely their employer's duty and 2% are more likely to rely on their own savings. Twelve percent of people surveyed chose the 'all of the above' option. No one participating in the survey is planning to rely on their adult children.

Roughly half of Russians (48%) would like to start saving for retirement now together with their employers if their corporate pension contributions are not reflected on their wages and bonuses, while 8% are prepared to sacrifice a portion of their bonuses for retirement savings. Three percent of respondents already have a corporate pension program at their place of work.

Almost one-quarter of Russians (23%) are currently saving for retirement on their own (i.e. without participatory contributions from their employer). Another 19% plan to start saving soon. Twenty-five percent of respondents assert that they have already ensured themselves pension capital. Twelve percent believe that it is too early for them to be thinking about old age.

Participatory corporate pension programs (CPP), through which employers make equal contributions to employees, could very well ensure the desired retirement income for Russians. In most developed nations, these types of savings account for 30-50% of elderly people's income. CPP guarantees employees' social protection after they retire and provides employers with an effective tool with which to motivate personnel and retain qualified specialists.

Alexander Zaretsky

CEO, NPF of Sberbank