Financial Literacy and Retirement Planning in View of a Growing Youth Demographic: The Russian Case
Leora Klapper () and
Georgios Panos ()
No 114, CeRP Working Papers from Center for Research on Pensions and Welfare Policies, Turin (Italy)
Our study contributes to the financial literacy literature by examining its association with retirement planning in an interesting and novel context, i.e. that of a country with a relatively old and rapidly ageing population, large regional disparities and a rapidly emerging financial market. Even though consumer borrowing is increasing very rapidly in Russia, we find that only 36.3% of respondents in our sample know about the working of interest compounding and only half can answer a simple question about inflation. In a country with pervasive public pension provision, we find that financial literacy is significantly and positively related to retirement planning using private pension funds and schemes. Residents in rural areas are much more reliant on the public provision and invest less in private schemes and savings. The results of our study have a clear policy implication; along with encouraging the availability of private retirement plans and financial products, efforts to improve financial literacy can be pivotal to the expansion in the use of such schemes.
Keywords: Financial literacy; Retirement Planning; Pensions; Russia (search for similar items in EconPapers)
JEL-codes: D91 G11 G23 (search for similar items in EconPapers)
Pages: 39 pages
New Economics Papers: this item is included in nep-age, nep-cis and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (57) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:crp:wpaper:114
Access Statistics for this paper
More papers in CeRP Working Papers from Center for Research on Pensions and Welfare Policies, Turin (Italy) Contact information at EDIRC.
Bibliographic data for series maintained by Silvia Maero ().