Lifetime employer: most Russians seek to get corporate pension after retiring
As much as 16% of Russians know and 18% have “overheard” that corporate retirement plans (CRPs) are part of the employee benefits in some Russian companies. Most of those who know about CRPs (20%) are in the 56+ age group, the least aware people (6%) are among the 18-25-year-old respondents. On the other hand, every fourth young person (26%) has heard something about a corporate pension. Today, only 3% of the respondents participate in CRPs of their companies, regardless of age.
As much as 84% of Russians would like to receive a corporate pension after retirement. Over the past year, the number of those who dream of this additional income has increased: in February 2020, during a similar survey conducted by Rabota.ru and NPF of Sberbank, 78% of the respondents stated they’d like to receive payments from the employer.
The interest in corporate pensions is high among people aged 36-55 (85%). Among 18-25-year-olds, the metric stands at 81%, and in the 56+ age group almost every fourth (24%) does not want to be part of a CRP, probably fearing that before retiring they will not have made enough savings, even with the employer’s help.
As much as 38% of the respondents believe that the size of a corporate pension should exceed 30,000 rubles a month (this is the most common answer). A year ago, 36% of Russians had such expectations. Other answers are as follows: 26% would agree to receive 20,000-30,000 rubles a month (26% now; 20% a year ago), 15,000-20,000 rubles (18% now; 19% in 2020), 10,000-15,000 rubles (12% now; 14% last year). Only 6% of Russians agree to payments of up to 10,000 rubles a month, compared to 11% a year earlier.
Interestingly, most of the respondents who would like to receive more than 30,000 rubles a month from their employer after retirement are in the age groups 26-35 and 46-55 — 42% each; among those over 56 years old, the metric is 39%. Young people turned out to have somewhat lower expectations: 31% of 18-25-year-old Russians would like to receive more than 30,000 rubles and the same amount would like a corporate pension worth 20,000-30,000 rubles a month.
Corporate retirement plans when the employer makes contributions equal to those of the employee may well provide Russians with the desired income after retirement. For example, if a Russian with an average monthly salary of 47,867 rubles joins a CRP at the age of 30 and deposits 3% of one’s salary (1,436 rubles) to the plan monthly, to which the employer adds equal contributions, the size of their corporate pension will eventually be 32,423 rubles a month. The advantages of a CRP are obvious: employees receive a guarantee of social security upon retirement, and the employer acquires a tool to motivate staff and retain highly-qualified specialists
CEO, NPF of Sberbank
Employee benefits are becoming increasingly important for job seekers. This is especially noticeable during periods of crisis, as the population begins to value stability and confidence in the future more. On Rabota.ru, you can find useful information about a potential employer in advance, including the availability of benefits, as well as see the ratings and reviews about the company from current or former employees
Vladimir KoritskyCommercial Director, Rabota.ru