retirement strategies of russians ( 2005-2010 )
Post on 23-Feb-2016
42 Views
Preview:
DESCRIPTION
TRANSCRIPT
RETIREMENT STRATEGIES OF RUSSIANS (2005-2010)Olga KuzinaHigher School of Economics, Moscow
Retirement strategies
Do people have an idea about the amount of their future state pension? Do they think that their state pension will be enough to make their ends meet?Do they expect to have additional sources of income? What are these sources? How many do make any financial provisions for their retirement?From which sources do current pensioners draw their incomes? Do people know anything about the state program of co-financing the retirement savings?What do people think about this program? How many do participate?
How are people going to ensure that their incomes will be sufficient to provide them an acceptable level of living?
%Male 45Female55
10018-24 1425-34 2035-44 1745-59 2960+ 20
100
All-Russian surveysN=1600 Sample error - 3,4%
Datadescription
Waves2005 – ZIRCON 2007 – НАФИ2009 - HSE2010 – HSEIn all waves the same question wording and sampling methodology was used
RETIREMENT INCOME STRATEGIES OF PEOPLE OF WORKING AGE
When you will retire do you think that the level of your pension will be enough to live on? % of people of working age
RETIREMENT INCOME EXPECTATIONS – VERY FEW ARE SURE THAT THEY WILL BE ABLE TO LIVE ON THE STATE PENSION
The level of retirement confidence in the USA
RETIREMENT INCOME EXPECTATIONS DO NOT DIFFER ACROSS AGE GROUPS 25+
When you will retire do you think that the level of your pension will be enough to live on? % in age groups, 2010
RETIREMENT INCOME EXPECTATIONS DO NOT DIFFER ACROSS QUINTILE INCOME GROUPS
When you will retire do you think that the level of your pension will be enough to live on? % in quintile income groups, 2010
Do you expect that apart from the state pension you will receive additional income from other sources? % of people of working age
RETIREMENT INCOME EXPECTATIONS – EVERY SECOND EXPECT TO RECEIVE INCOMES FROM OTHER SOURCES
TYPES OF ADDITIONAL INCOME SOURCES IN RETIREMENT, % OF THOSE WHO EXPECT TO HAVE INCOMES FROM OTHER SOURCES IN RETIREMENT
2005 2007 2009 2010Continue to work in my profession 41 42 52 48Continue to work, will find a job to be able to do 33 34 40 39My spouse will continue working in retirement 5 8 15 8Expect that my children will help me 12 18 20 21Hope to get help from charity foundations 0,5 0,7 0,7 0,5Self-provision 15 14 13 8
Consider moving to a smaller (cheaper) apartment (house) to use the difference for consumption as the need arises
0,6 2 2 0,7
Receive income for renting out my real estate property 2 3 3 4Plan to use my savings 5 9 5 8Plan to receive a supplementary pension from the private pension fund or life insurance policy
3 4 3 5
Expect to receive inheritance 2 3 4 3Do not know now, will think about it later 13 14 6 14Something else 1 1 1 2Total (over 100% because this question allowed multiple choice answers)
133 153 165 161
N 602 670 553 582
AGGREGATIVE ANSWERS, % OF THOSE WHO EXPECT TO HAVE INCOMES FROM OTHER SOURCES IN RETIREMENT
2005 2007 2009 2010
Work 72 73 83 81Help 12 18 20 21Financial tools 9 14 11 15
Self-provision 15 14 13 8
Real estate 3 4 4 4Do not know 13 14 6 14
Other 1 1 1 2N 602 670 553 582
TYPES OF ADDITIONAL INCOME SOURCES IN RETIREMENT, % OF PEOPLE OF WORKING AGE
2005 2007 2009 2010Work 42 42 41 43Help 7 10 10 11Financial tools 5 8 5 8Self-provision 9 8 6 4Real estate 2 2 2 2Do not know what these sources will be 8 8 3 7Other 1 1 0 1Do not expect to have additional incomes in retirement 23 24 36 29Do not know if will have additional incomes in retirement 19 19 15 18N 1090 1168 1128 1095
RETIREMENT INCOME STRATEGIES OF PENSIONERS
TWO THIRDS OF PENSIONERS DO NOT HAVE ADDITIONAL SOURCES OF INCOMES, % OF ALL
PENSIONERS
2005 2007 2009 2010
Have additional incomes 29 38 32 33
Do not have additional incomes 69 57 67 66
N 392 411 468 503
TYPES OF ADDITIONAL INCOMES IN RETIREMENT, % OF ALL PENSIONERS
2005 2007 2009 2010Work 10 18 22 26Help 8 12 8 4Financial tools 1 1 2 1Self-provision 13 12 4 4Real estate 0 0 0 1Other 1 2 0 3No additional income 69 57 67 66Difficult to say 2 5 1 1N 383 411 468 503
Over 100% because this question allowed multiple choice answers
KNOWLEDGE ON THE STATE PROGRAM OF CO-FINANCING THE RETIREMENT SAVINGS
THE MAJORITY OF PEOPLE OF WORKING AGE KNOW THAT THEY CAN VOLUNTARY CONTRIBUTE TO THEIR PENSIONS BY ALLOCATING MONEY TO PRIVATE PENSION FUNDS BUT VERY FEW DO THAT
2009 2010Yes, I do it 8 8Yes, I would like to do it 16 12No, I might wish to do it but I know very little about it
25 18
No, I do not 50 62N 779 851
Do you allocate (or plan to do it) money to a private pension fund in order to get a supplementary pension in retirement? % of those who know about this possibility
Do you know that you can voluntary contribute to your pension by allocating money to a private pension fund in order to get a supplementary pension in retirement? % working age people, N= 1098, 2010
2009 2010Do not trust private pension funds 58 60No nothing about private pension funds 6 5Do not have enough information how to choose a pension fund properly 3 3
Do not have spare cash for it 31 37Do not know for sure my spending and earnings in future 13 11
Other 5 7Difficult to say 2 0N 392 525
Why do not you want to contribute money to a private pension fund to get a supplementary pension? % of those who do not want to deal with private pension funds, multiple choice
with not mоre than 2 answers
LACK OF TRUST RATHER THAN LACK OF MONEY OR INFORMATION MAKE PEOPLE REFUSE FROM USING PRIVATE PENSION FUNDS
AWARENESS OF THE STATE PROGRAM OF CO-FINANCING THE RETIREMENT SAVINGS AND
WILLINGNESS TO PARTICIPATE IN IT
THE MAJORITY OF PEOPLE KNOW ABOUT THE STATE PROGRAM OF CO-FINANCING THE RETIREMENT SAVINGS BUT ONLY 27% CAN SAY THAT THEY
KNOW IT WELL
Starting in 2009 it is possible to get a 100% supplement to your voluntary contributions to supplementary pensions if you contribute from 2000 up to
12000 rubles. Do you know about it? %, N=1098, 2010
73
21
What is your attitude towards this program? %, N=1223 , 2010
EVERY SECOND OF THOSE WHO ARE ELIGIBLE FOR THIS PROGRAM APPRECIATE IT HIGHLY
22
Are you going to take part in this program? %, N=1223, 2010
NEVERTHELESS ONLY 22% ARE READY TO TAKE PART IN THIS PROGRAM
23
THE DYNAMICS OF ATTITUDES TOWARDS THE PROGRAM AND WILLINGNESS TO PARTICIPATE – THE DECREASE OF OPTIMISM IN 2010, %
2009 2010 Attitudes Willingness Attitudes Willingness
Positive/yes 14 6 14 4Rather positive/ rather yes 41 24 36 18Rather negative/ rather no 15 27 17 40Negative/ no 5 22 7 23Difficult to say 25 23 26 16N 1227 1227 1223 1223Balance of positive estimations over negative ones, points 22 -18 17 -30
24
VERY FEW REPORT THAT THEY HAVE STRATEGIC GOALS AND EVEN LESS - STRATEGIES TO ACHIEVE THESE GOALS
%, N=1600 , 2010
25
DISCUSSION It seems that in the life-long perspective Russians do not smooth consumption as the Life-Cycle Model (Modigliani) predicts.
Why do Russians prefer work after retirement and not savings? The idea of rationality is conceptualized not as a given inborn property of individuals but rather as a competence acquired through socialization in the presence of the particular type of social institutions: based on personal or impersonal trust.
The lack of impersonal trust in financial institutions makes long-term financial savings for retirement impossible. That is why in life-cycle terms pensioners may compensate the loss of incomes by continuing to work after retirement or through sharing incomes in an extended family.
Income smoothing rather than consumption smoothing.
Could it be generalised to other institutional frameworks?
top related