Bank Deposit Most Common Way Russians Save Money for Retirement

Savings made through bank deposits, bonds, investments, endowment life insurance (NSH), or renting out real estate may assist maintain a decent living after retirement, according to Pavel Guzhikov, the founder and CEO of the fintech business Money Forward.

A bank deposit, according to the expert, is one of the most common vehicles for establishing a financial reserve. It’s similar to buying bonds in that it’s a low-risk investment. It should be noted, however, that the revenue generated by these ways is much smaller than that generated by other methods, Sputnik Radio reports.

Shares can provide a greater return; the advantage from this instrument can be gained through dividends or through the increase in the value of the share itself. However, keep in mind the dangers: the firm may stop being successful, and the stock’s value may plummet.

Moreover, among the tools, the specialist mentioned accumulative life insurance (NLI) and real estate leasing. According to him, the latter technique typically provides around 4-5 percent of annual income to retirees.

Sputnik radio previously cited that Russia’s minimum wage would be increased beginning in 2022.