See Benefits of Private Pensions
Private or public? Russians choose pension schemes
The private pension market in
is growing rapidly. Market analysts forecast that in the next seven years
almost half of the country’s working population will transfer their
pension savings from state-run companies to private fund managers.
In the first quarter of 2008, the
number of pension contracts Russians signed with commercial pension funds
tripled compared to last year.
Despite the pension reforms of 2002,
which allowed people to entrust their pensions to non-governmental
organizations, the majority of Russians still look to the state.
Currently, the Russian Development Bank holds more than 90 per cent of
people’s pension contributions.
The painful experiences of the early
1990s and the 1998 default, when even solid banks lost people’s money,
have made Russians cautious about investing in commercial funds.
Now it looks like more people are
becoming aware of the attraction of non-governmental funds.
Stalfund was launched as a corporate
pension fund for the steel giant Severstal employees. Soon after, the fund
reached out to the wider market and now has more than 200,000 clients.
Nerijus Zaksauskas, Stalfund’s marketing director, says the pension
group has a clear vision of how the market should develop.
very important to be open, professional and transparent. And Stalfund has
achieved that. We are one of the few who have full transparency of our
portfolio,” he said.
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