The two main advantages of the long-term savings program (LSP) are state co-financing and tax breaks, Russian Senator Olga Epifanova told socialbites.ca.
“The state treasury will add a certain amount to personal contributions made in the first three years. The exact amount of state co-financing depends on the average monthly income. For example, if you save 3 thousand rubles per month for three years, you can replenish your account by 108 thousand rubles, and the state will add the same amount. As for tax benefits, you can return previously paid personal income tax (13%) from the funds contributed in the relevant year (but not more than 52 thousand rubles per year),” the senator noted.
According to her, savings in the PDS are insured up to 2.8 million rubles, including investment income. In a difficult life situation, for example, the need for expensive treatment, you can receive money from the account, as well as additional payments from the state, Epifanova added. Funds in the PDS can be inherited, cannot be seized or seized, and are not subject to division in the event of a divorce.
However, according to the senator, profitability under the PDS is limited to vehicles of non-government pension funds and was around 10-11% on average last year.
The right to receive payments under the PDS arises in case of participation in this program for at least 15 years or upon reaching the age of 55 (60). In addition, you can withdraw all funds without loss only after 15 years of participation in the PDS.
The long-term savings program will be operational in Russia from January 1, 2024.
Previously reportedStarting from 2025, Russians will be able to return up to 88 thousand rubles from contributions under the long-term savings program.
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Source: Gazeta
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