Financial behaviour leading to active longevity
Statistics and analytics
The shift in attitudes towards the topic of the old age and life in retirement has proliferated recently from a negative “survival” to a more positive “active stage of life filled with free time and new opportunities.” Clearly, active longevity is directly linked to seniors’ interactions with money, personal finance management, planning, budgeting, various aspects of financial and digital literacy, and ways to protect themselves against fraudsters.
The level of financial literacy among seniors in the Russian Federation is still among the lowest: only one in ten persons older than 55 (11%) considers his or her own financial knowledge and skills to be sufficient. Research findings corroborate this self-assessment. The situation is made worse by difficulties encountered by financial institutions working with seniors: an audience with specific needs that require different customer service processes. That is the conclusion of a research paper entitled “Financial behaviour of Russian seniors in the context of digitalisation” compiled by the NAFI Research Centre specialising in opinion polls, analysis and advisory services. NAFI will present their findings and data at the EWF.
NAFI’s research has shown that a third of Russian seniors (27% of those aged 60 and older) do not benefit from the opportunities offered by the modern financial infrastructure. Those who do use them are mostly limited to imputed services, such as utility e-payments or pensions paid onto their bank cards.
“Retirees are wary of non-cash payments and prefer dealing with cash, even though the number of gadgets they use is steadily on the rise,” said Elena Nikishova, Head of Social and Economic Research at the NAFI Research Centre. She believes the problems are surmountable, as seniors themselves speak not only of the difficulties they face but also of their readiness to learn. “Importantly, seniors between 50 and 70 and those older than 70 are two very different groups in generational and behavioural terms; that’s why recommendations on how to accommodate them will differ. For ‘younger’ retirees, it’s education, and for ‘older’ ones it’s protection of their rights and the fight against financial fraud”, the expert added.
Active longevity programmes with the right financial angle could have a positive effect of developing enterprise and self-employment among seniors.
Demand for entrepreneurship is weaker among the senior audience, yet their level of conversion into actual businesspeople is higher by an order of magnitude than among the young. Whereas two thirds (64%) of Russians aged 18–24 plan to become entrepreneurs but only 2% actually fulfil their plans, 25% of the generation of 45 to 60-year-olds think of starting a business and 10% have already done so.
NAFI’s participation in the Eurasian Women’s Forum
The NAFI Research Centre is the organiser of the “Programmes and institutions for the development of women’s enterprise” open debate on day one of the Eurasian Women’s Forum. The debate moderator, NAFI CEO Guzeliya Imayeva, will speak with government officials, representatives of development institutions in the areas of small and medium-sized enterprise, and successful women entrepreneurs about barriers and new opportunities for women to access business education and the need to improve financial literacy to achieve economic progress.
Tina Stankevich, Eurasian Women’s Community news agency