The Long-Term Savings Program (LTS), which the Ministry of Finance and the Central Bank plan to implement until 2024, will provide additional advantages to citizens. Sber Senior Vice President Ruslan Vesterovsky told reporters about this at a meeting on April 20.
“According to our estimates, if the program is launched in 2024, by 2030 up to 15 million people could join the program and assets under management could reach 4 trillion rubles. As expected, non-state pension funds will be the operators of the new program. At the same time, as the program is implemented, the composition of operators can be expanded to include other professional participants, including life insurers.”
Vesterovsky recalled that several laws were passed recently that make long-term savings more profitable and safer for citizens.
“For example, voluntary retirement savings are now insured similar to bank deposits. And on April 4, the State Duma, at the first reading, passed a bill that increased the amount of insurance coverage from 1.4 million to 2.8 million rubles. In addition, recent changes to the Tax Code have made it possible for Russians to save for the future in favor of their parents or spouses, without paying personal income tax,” he said.
According to him, the long-term austerity program prepared by the government will give Russians more opportunities to save for the future and create a “safety cushion”.
“Those who will participate in it, the state will benefit. For example, co-financing savings on a one-to-one, one-two, or one-fourth ratio, depending on one’s income. In other words, the state will add more to every ruble postponed,” he said.
Thus, the maximum coefficient will be received by Russians with an income of up to 80 thousand rubles per month. At the same time, the total amount of co-financing from the state will increase to 36 thousand rubles per year. In addition, people with an above-average salary will receive a separate tax deduction with a limit of 400,000 rubles per year.
“The long-term savings program will provide Russians with the opportunity, firstly, to save for the future, and secondly, to receive additional benefits from the state for this. “Innovation will not only increase citizens’ confidence in long-term financial instruments, but will also become a driving force for the development of the industry as a whole.”