61.9%

is the amount by which the real value of savings in Russia’s defined contribution pension system declined in 2004-2011. Only four out of 68 management companies saw returns on investment exceed inflation during this period.

Returns on investment for Russia’s non-state pension plans were lower than in all OECD countries. The reason is that Russian non-state pension plans prefer to invest in low-risk assets, a strategy that does not pay off.

This information comes from a study by Alexander Nepp, associate professor at the Ural Federal University; Polina Kryuchkova, lead research fellow at the HSE’s Laboratory of Competition and Antimonopoly Policy (Institute for Industrial and Market Studies); and Professor Aleksandr Semin of the Russian State Vocational Pedagogical University. More detailed results from the study – ‘Institutional Environment Related Investment Risks in Russia’s Mandatory Pension Insurance System.