Planned income: quarter of Russians have long-term financial strategies

Nov 22, 2021

According to SberNPF, over one-half of Russians (58%) track household income and expenditures, with almost a quarter (22%) planning their budgets in the long- and mid-term, and every sixteenth respondent setting an average of 5% of income aside for retirement on a regular basis.

Women plan and track their family budgets in the somewhat long term more often (64%). Older generations are more likely to control their budgets: 40-50-year-olds (56%), the 50-60 age group (68%), and 18-30-year-olds (38%).

Household expenditures are mostly being planned by people in Astrakhan (87%), Kemerovo (86%), Orenburg (77%), Ulyanovsk (77%), Kirov (72%), Barnaul (70%), Novokuznetsk (70%), Chelyabinsk (69%), Krasnodar (68%), and Krasnoyarsk (66%).

Usually, Russian households do not plan their income and expenditures for many months ahead. While 87% of respondents plan their budget in detail for one month ahead, only 4% do that for 9-11 months. Twenty-two per cent of Russians try to plan income and large expenses for the medium and long term (2.1 years on average in the country). The longest planning term was revealed in Astrakhan (large purchases planned for an average of 3.9 years), Ufa (3.6 years), Yaroslavl (3.4 years), Saratov (3.3 years), and Penza (3.2 years).

Retirement savings in Russia are so far less popular than those for large purchases. Nonetheless, 6.1% of the survey respondents do make pension savings. Those approaching their pension (50-60-year-olds) take care of such savings four times as often as young people aged 18–30 (11% vs 2.7%).

Most of the Russians who purposefully save up for retirement now live in Astrakhan (10.2%), Vladivostok (9.8%), Khabarovsk (9.8%), Ryazan (9.3%), Ulyanovsk (8.6%), Samara (8.5%), Barnaul (8.4%), Perm (8.4%), Yekaterinburg (8.1%), and Tyumen (7.6%).

Alexander Zaretsky, CEO, SberNPF:

“The survey showed that Russians who save up for retirement purposefully and regularly allocate an average of 5% of their income for this purpose. Tyumen (5.9%), Ufa (5.8%), Perm (5.7%), Krasnoyarsk and Moscow (5.6% each) are the cities where people set aside more. According to respondents, the most promising long-term investments are bank deposits (35%) and the stock market (stocks, mutual funds, etc.), mentioned by 24% of the participants. Individual retirement plans (IPPs) can be more profitable than deposits and less risky than stocks. You can see how much you should save through IPPs using a special SberBank Online service called the Pension Showcase (section Pensions, the SberNPF Pensions and Services tab). It shows the size of the monthly pension payment as of today and details of your long-term savings instruments.”

The CATI survey was conducted in October and early November of 2021 in 37 cities of Russia with 500,000+ people each.

Appendix

Cities of Russia 

Families tracking their income and expenditures all the time or usually

Astrakhan

87%

Barnaul

70%

Vladivostok

42%

Volgograd

60%

Voronezh

61%

Ekaterinburg

49%

Izhevsk

46%

Irkutsk

61%

Kazan

43%

Kemerovo

86%

Kirov

72%

Krasnodar

68%

Krasnoyarsk

66%

Lipetsk

61%

Makhachkala

48%

Moscow

41%

Naberezhnye Chelny

44%

Nizhny Novgorod

52%

Novokuznetsk

70%

Novosibirsk

56%

Omsk

61%

Orenburg

77%

Penza

52%

Perm

53%

Rostov-on-Don

42%

Ryazan

60%

Samara

52%

St. Petersburg

35%

Saratov

61%

Tolyatti

55%

Tomsk

53%

Tyumen

64%

Ulyanovsk

77%

Ufa

49%

Khabarovsk

60%

Chelyabinsk

69%

Yaroslavl

47%

Cities of Russia 

Planning term (months)

Astrakhan

2.1

Barnaul

1.0

Vladivostok

1.0

Volgograd

2.7

Voronezh

2.8

Ekaterinburg

1.2

Izhevsk

1.4

Irkutsk

1.0

Kazan

1.1

Kemerovo

1.1

Kirov

2.2

Krasnodar

1.4

Krasnoyarsk

1.3

Lipetsk

1.5

Moscow

1.4

Naberezhnye Chelny

1.6

Nizhny Novgorod

1.9

Novokuznetsk

2.0

Novosibirsk

1.6

Omsk

1.7

Orenburg

1.3

Penza

1.3

Perm

2.1

Rostov-on-Don

1.2

Ryazan

1.1

Samara

1.7

St. Petersburg

1.7

Saratov

1.2

Tolyatti

1.3

Tomsk

1.3

Tyumen

1.2

Ulyanovsk

1.4

Ufa

2.4

Khabarovsk

1.3

Chelyabinsk

1.8

Yaroslavl

1.4

Cities of Russia 

Proportion of people making pension savings

Astrakhan

10.2%

Barnaul

8.4%

Vladivostok

9.8%

Volgograd

2.4%

Voronezh

7.5%

Ekaterinburg

8.1%

Izhevsk

6.0%

Irkutsk

4.1%

Kazan

3.6%

Kemerovo

7.6%

Kirov

4.4%

Krasnodar

7.0%

Krasnoyarsk

2.2%

Lipetsk

5.0%

Moscow

7.3%

Naberezhnye Chelny

3.4%

Nizhny Novgorod

5.5%

Novokuznetsk

6.7%

Novosibirsk

5.3%

Omsk

4.7%

Orenburg

6.2%

Penza

4.2%

Perm

8.4%

Rostov-on-Don

3.9%

Ryazan

9.3%

Samara

8.5%

St. Petersburg

6.8%

Saratov

4.7%

Tolyatti

5.2%

Tomsk

5.3%

Tyumen

7.6%

Ulyanovsk

8.6%

Ufa

3.1%

Khabarovsk

9.8%

Chelyabinsk

4.7%

Yaroslavl

6.2%

Cities of Russia 

Share of income allocated for pension

Astrakhan

5.1

Barnaul

5.5

Vladivostok

5.0

Volgograd

5.3

Voronezh

5.0

Ekaterinburg

5.4

Izhevsk

5.3

Irkutsk

5.4

Kazan

4.9

Kemerovo

5.0

Kirov

5.1

Krasnodar

5.1

Krasnoyarsk

5.6

Lipetsk

5.1

Moscow

5.6

Naberezhnye Chelny

5.3

Nizhny Novgorod

5.4

Novokuznetsk

5.4

Novosibirsk

5.3

Omsk

4.9

Orenburg

5.4

Penza

5.5

Perm

5.7

Rostov-on-Don

5.5

Ryazan

5.0

Samara

5.4

St. Petersburg

5.4

Saratov

5.5

Tolyatti

4.7

Tomsk

5.2

Tyumen

5.9

Ulyanovsk

5.1

Ufa

5.8

Khabarovsk

5.5

Chelyabinsk

5.1

Yaroslavl

4.8