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Financial literacy and retirement planning : the Russian case

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  • Klapper, Leora
  • Panos, Georgios A.

Abstract

The authors examine the association of financial literacy with retirement planning in Russia, a country with a relatively old and rapidly aging population, large regional disparities, and a rapidly emerging financial market. They find that only 36.3 percent of respondents in the sample understand interest compounding and only half can answer a simple question about inflation. In a country with widespread public pension provisions, they find that financial literacy is significantly and positively related to retirement planning involving private pension funds and schemes. Thus, along with encouraging the availability of private retirement plans, efforts to improve financial literacy could be pivotal to the expansion of the use of such schemes.

Suggested Citation

  • Klapper, Leora & Panos, Georgios A., 2011. "Financial literacy and retirement planning : the Russian case," Policy Research Working Paper Series 5827, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5827
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    References listed on IDEAS

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    1. Simon Gaechter & Benedikt Herrmann, 2006. "The limits of self-governance in the presence of spite: Experimental evidence from urban and rural Russia," Discussion Papers 2006-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2005. "Financial Literacy and Planning: Implications for Retirement Wellbeing," CeRP Working Papers 46, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    3. Mr. David Hauner, 2008. "Macroeconomic Effects of Pension Reform in Russia," IMF Working Papers 2008/201, International Monetary Fund.
    4. Mitchell, Olivia S. & Lusardi, Annamaria (ed.), 2011. "Financial Literacy: Implications for Retirement Security and the Financial Marketplace," OUP Catalogue, Oxford University Press, number 9780199696819.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Literacy; Pensions&Retirement Systems; Emerging Markets; Debt Markets; Gender and Law;
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