What to do with the low level of financial literacy in Russia?

What to do with the low level of financial literacy in Russia?

He hinders the development of funded pension systems, according to the Organization for economic cooperation and development. Financial literates are only 40% of Russians.

The development of savings systems in Russia is hampered by the level of financial literacy of the population. Such conclusion contains in the report of the Organization for economic cooperation and development.

It is noted that in Russia financial literacy is only about 40 percent of the adults: this figure is a third less than the average for developed countries. Less than 20% of citizens aged 35 to 44 years seriously thought about how they will handle their finances in retirement.

Weak desire of the Russians to participate in a pension savings connected with two factors, says the Director of the Center for studies of income and living standards, doctor of Economics Lilia Ovcharova.

The first factor is the inability of most people to generate these savings. It’s not because they are illiterate, but because of their level of material security is so low that they are barely enough for current consumption.

“The second important reason is the global economic crisis associated with the loss of pension savings of a large number of people living in a developed economy, greatly reduced the credibility of financial institutions operating in the segment of pension savings. Here it is necessary to speak not only about financial literacy, but also transparency and fairness of those financial conditions that are offered today on the voluntary market, especially mandatory funded pension systems”.

Deputy Director of the Institute for social analysis and forecasting Ranhigs Yuri Gorlin partly agree with the conclusions of the OECD expert: “as long as that of a funded system people practically get nothing in future prospects is also very vague.