Most Russians are getting suspicious with the amount of their pension

2021-04-19

According to a survey conducted by the NPF Sberbank and the Rambler portal, 63% of Russians are not satisfied with pensions. Only 3% are sure that they will be able to live on retirement. Around 19% of respondents said that they have already started saving for their future on their own.

It is obvious that the pessimistic mood in society is generated, on the one hand, by the pension reform, and on the other, by the extremely low size of pensions. The low size of pensions in itself creates doubts about the possibility of surviving on such a pension. The pension reform, which was unexpectedly carried out by the authorities in violation of all previously given assurances, does not allow us to hope that pensions will remain in the future at all. The latter position is supported by circulating rumours about a new increase in the retirement age.

Under these conditions, working people hope to improve their financial situation after retirement with the help of savings or even to replace pension with personal savings plans. However, this method is not very reliable and profitable. First, it limits the funds available to a particular employee at a given time. Second, deferred money is subject to inflation.
Even investing money in a bank does not help: the average interest on deposits is slightly higher than the inflation rate (in 2020, the interest on deposits was 5.9%, and the inflation rate was 4.9%). In addition, under capitalism, the economic situation is extremely unstable, so that all savings can turn to dust within a short time, as a result of a crisis or bank bankruptcy.

The commercialization of health care and education systems is also driving up labour costs. The result is the gradual impoverishment of most of the country’s population.