Young people seek to save RUB670,000 with Sber endowment policies
On Students Day, Sber has decided to dispel the myth about young people who are believed to be careless financially. In 2020, the number of Sberbank life insurance customers under the age of 25 who signed endowment life insurance contracts (ELI) jumped by 50% y-o-y. The analysis of policies taken out over the past three years has proven that young Russians set small amounts of money aside regularly and are set to keep doing that for a decade.
On average, young Russians seek to save up RUB670,000 (among customers of all ages the metric is RUB950,000). Every fifth Sber customer under 25 yo has a savings goal of RUB1 mn, while the highest targeted savings amount in this age group reaches RUB40 mn.
Every year, young customers sign longer-term ELI contracts. Most of the policies were taken out for five years (49%) in 2018, for 6–10 years (36%) in 2019, for 11–15 years (46%) in 2020.
Interestingly, young males are more active in saving than females (63% of contracts account for men), although in general, according to research, women are more inclined to set money aside. Men under 25 also take out insurance policies for larger amounts, with their average reaching RUB730,000, while with women it’s RUB650,000.
Young savers are most active in Moscow Region (34% of all policies), St. Petersburg and Leningrad Region (5%), Krasnodar Territory (3%), Rostov Region (3%), and Bashkortostan (3%).
Despite the popular opinion that young people don’t treat money with the seriousness it requires, after analyzing Sberbank life insurance customers we see that this belief is false. Not only do endowment life insurance policies provide you with insurance coverage, but they also let you save money conveniently no matter what your goal is, be it education, an apartment, a wedding, or unforeseen events. By the way, according to our study, 23% of young people save money for a rainy day, which is the most popular goal. Buying an apartment ranks second with 17%.Olga Monakhova, Executive Director of Investments and Savings, Sberbank