Skip to main content
×
Home

Financial literacy and retirement planning: the Russian case*

  • LEORA KLAPPER (a1) and GEORGIOS A. PANOS (a2)
Abstract
Abstract

We examine the relationship between financial literacy and retirement planning in Russia, a country with a relatively old and rapidly ageing population, large regional disparities, and emerging financial markets. We find that only 36% of respondents in our sample understand interest compounding and only half can answer a simple question about inflation. In a country with widespread public pension provisions, we find that financial literacy is significantly and positively related to retirement planning involving private pension funds. Thus, along with encouraging the availability of private retirement plans, efforts to improve financial literacy can be pivotal to the expansion of the use of such funds.

Copyright
References
Hide All
Bernheim D. (1995) Do households appreciate their financial vulnerabilities? An analysis of actions, perceptions, and public policy. In Walker C. E., Bloomfield M. and Thorning M. (eds), Tax Policy and Economic Growth. Washington, DC: American Council for Capital Formation, pp. 130.
EBRD (2007) Law in Transition. Available online at http://www.ebrd.com/downloads/research/law/lit071.pdf
Gächter S. and Herrmann B. (2006) The limits of self-governance in the presence of spite: experimental evidence from urban and rural Russia. IZA Working Paper No. 2236.
Gavrilova N. S. and Gavrilov L. A. (2009) Rapidly changing population: Russia/Eastern Europe. In Uhlenberg P. (ed.), International Handbook of Population Aging. Chapter 6. New York, NY: Springer Science and Business Media B. V., pp. 113131.
Gurvich E. (2004) The distributional aspects of Russia's pension system. Available online at http://www.eeg.ru/downloads/PUBLICATIONS/ANALYTICS/a20042511.pdf
Hauner David (2008) Macroeconomic effects of pension reform in Russia. IMF Working Paper WP/08/201.
Lusardi A. and Mitchell O. S. (2007) Baby boomer retirement security: the role of planning, financial literacy, and housing wealth. Journal of Monetary Economics, 54: 205224.
Lusardi A. and Mitchell O. S. (2011) Financial literacy and planning: implications for retirement wellbeing. In Lusardi Annamaria and Mitchell Olivia S. (eds), Financial Literacy: Implications for Retirement Security and the Financial Marketplace. Oxford: Oxford University Press, forthcoming.
OECD (2006) Reform and Challenges for Private Pensions in Russia. Private Pension Series No. 7. Paris: OECD Publishing.
Russia Census (2002) Available online at http://www.perepis2002.ru/index.html?id=87
Central Russian Statistics Offices (ROSSTAT) (2008). Available online at http://www.gks.ru/eng/
Terra Daily (10/07/ 2007) Russia has become a nation of pensioners. Available online at http://www.terradaily.com/reports/Russia_Has_Become_A_Nation_Of_Pensioners_999.html
World Bank (2007) From red to grey: the third transition of ageing population in Russia. Chapter 3. Russia Economic Report No. 15.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Pension Economics & Finance
  • ISSN: 1474-7472
  • EISSN: 1475-3022
  • URL: /core/journals/journal-of-pension-economics-and-finance
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 8
Total number of PDF views: 98 *
Loading metrics...

Abstract views

Total abstract views: 348 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 20th November 2017. This data will be updated every 24 hours.