Long-term savings programme to be launched in Russia in 2024
The Long-term Savings Programme (LSP) will be launched in Russia next year. This new saving instrument is a simple and convenient form to make savings. People will be able to earn additional income in the future or create safety cushions to be protected in challenging life situations. The State Duma has approved the draft law on the LSP in the second reading.
To participate in the Programme, a customer will need to sign a special agreement with a non-governmental pension fund (NPF). It will be possible to either make savings from one’s own voluntary contributions or transfer the earlier accumulated pension savings to the Programme. NPFs will invest these funds to the benefit of their customers based on the profitability and zero-loss principles.
The LSP provides for government co-financing of people’s own contributions, namely in the amount of up to ₽36,000 a year for three years after a person enters the Programme, as well as a special tax deduction of up to ₽52,000 annually provided that the contributions total up to ₽400,000.
People will be allowed to use these funds to make additional regular payments 15 years after the effective date of the agreement or when women are aged 55 and men — 60.
People’s contributions will be insured by the government for ₽2.8 million, which is twice as much as the amount for bank deposits.
The savings made under the LSP are fully inheritable, net of the funds paid (except in the case when a participant in the Programme was granted a lifelong regular payment).