The Central Bank (CB) of Russia plans to attract at least 9 million people to participate in the long-term savings program (LTS) by 2030. This was stated on Tuesday, January 16, by First Deputy Chairman of the Central Bank of the Russian Federation Vladimir Chistyukhin.
According to him, the volume of investments could reach 1.2 trillion rubles. In addition, Chistyukhin noted that nine non-state pension funds (NPFs) have already become operators of the new system.
“It is fundamentally important for us today to implement long, long, complex projects. <…> It seems that the long-term savings program will allow citizens to secure their lives in old age and provide the necessary financial safety margin. A large number of different incentives have been created for this, primarily tax incentives and the possibility of co-financing,” said a representative of the Central Bank at the Russia exhibition and forum, opening Finance Day at the Ministry of Finance stand.
On July 10, Russian President Vladimir Putin signed a law according to which, from January 1, 2024, a new long-term savings program for citizens will be launched in the country.
Participation in it will be voluntary and for it it is necessary to conclude an agreement with a non-state pension fund for at least 15 years, while it is possible to conclude agreements with various non-state pension funds. Long-term savings will be formed by citizens of the Russian Federation from their own funds and from previously accumulated pension savings. 15 years after participating in such a program or upon reaching the age of 55 years for women and 60 years for men, Russians will receive the right to periodic payments: at the participant’s choice, either for a period of at least 10 years or for life.
An expert at the Financial University under the Government of the Russian Federation, Marat Safiulin, commenting on the advantages of the long-term savings program, pointed out that program participants can transfer funds from the frozen funded part of the pension to the Long-Term Savings Agreement (LSA) account, thereby combining voluntary and pension resources in one account. The specialist emphasized that you can take advantage of the program even before retirement.
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