Strategies for senior citizens to potentially secure a monthly income of 150,000 rubles: Insights on enhancing retirement benefits.
Russian Pensioners Face Long Wait to Achieve Sufficient Income
An expert on the Russian stock market, Kirill Selesnev from Garda Capital, has revealed that a typical Russian worker would require over 50 years to accumulate the 36 million rubles necessary to receive a monthly pension of 150,000 rubles, adjusted for inflation.
According to Selesnev, this amount equates to an annual yield of 1.8 million rubles, with the equivalent income today. If one does not invest the funds, the accumulation period increases to over 50 years.
In an interview with Gazeta.Ru, Selesnev explained that the expected return on investments, adjusted for inflation, in the Russian market usually does not surpass 5% annually. As such, one would need at least 36 million rubles to attain the desired capital level.
For a 40-year-old with no savings or assets, such as additional real estate, a dacha, or a large apartment that could be sold for funds, amassing 36 million rubles, adjusted for inflation, would take over 25 years if the entire salary is invested in securities. If the funds are kept on deposits or savings accounts, the accumulation period will extend to over 50 years.
According to the Social Fund, women pensioners in Russia receive, on average, slightly higher pensions than men. The average monthly pension for women is 23,249.58 rubles, compared to men who receive an average of 23,028.33 rubles. The overall average pension in the country is 23,175.17 rubles. This trend has been observed for several years.
In light of these findings, it is crucial for individuals to carefully plan their retirement savings and consider various investment strategies to help reach their financial goals more efficiently.
Additional Considerations:
To estimate the length of time required for an average-income Russian to accumulate 36 million rubles (adjusted for inflation) for a pension of 150,000 rubles per month, one must consider factors such as average income, savings rate, investment returns, inflation, and drawdown strategies.
In the Russian market context, investment returns have been volatile, with high volatility in recent years but strong returns in bull years. Bonds offer high yields, with the Bank of Russia maintaining a key rate at 21% as of April 2025. However, real (inflation-adjusted) rates are much lower. The ruble surged, with a year-to-date appreciation of 37.42% against the USD as of May 2025. This increase is partially attributable to high interest rates and carry trades.
The average monthly income in Russia is currently around 60,000–70,000 rubles, and Russian households typically save a modest portion of their income. Considering these factors and optimistic household savings, amassing 36 million rubles within a reasonable working lifetime may not be feasible. However, with much higher savings rates, higher real returns, or inherited wealth, the target could potentially be reached.
Most Russians rely on state pensions, family support, or private sector jobs for their retirement income rather than relying on personal savings.
- For a Russian individual hoping to secure a monthly pension of 150,000 rubles, they would need to accumulate 36 million rubles (adjusted for inflation), a feat that, with an average salary and savings rate, might require over 25 years of investing the entire salary in securities.
- Given the current investment landscape in Russia, carefully planning personal finance and employing strategic savings and investment methods is crucial to reaching financial goals in a more efficient manner, especially with the aim of securing a comfortable retirement pension.
