Financial literacy and retirement planning: the Russian case

Citation

Klapper L & Panos G (2011) Financial literacy and retirement planning: the Russian case. Journal of Pension Economics and Finance, 10 (4), pp. 599-618. https://doi.org/10.1017/S1474747211000503

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.

Keywords
Financial literacy; retirement planning; pensions; Russia

Journal
Journal of Pension Economics and Finance: Volume 10, Issue 4