The Long-Term Savings Program (LTS) is being designed by the Ministry of Finance and the Central Bank to bring added benefits to citizens. In a briefing, Sber Vice President Ruslan Vesterovsky outlined the plan, highlighting its potential impact on savings and retirement security for households.
Officials estimate that, if launched, the program could attract up to 15 million participants and reach as much as 4 trillion rubles in assets under management, with non-state pension funds serving as the initial operators. As the program evolves, other professional participants, including life insurers, may join the roster of operators to broaden participation and efficiency.
Vesterovsky noted that several recent laws have been enacted to enhance the profitability and safety of long-term savings for citizens. For instance, voluntary retirement savings are now insured in a manner comparable to bank deposits. In parallel, a bill was approved by the State Duma at an early stage of consideration to raise the insurance coverage limit from 1.4 million to 2.8 million rubles. Additionally, changes to the Tax Code enable Russians to save for the future in ways that can benefit spouses or parents without triggering personal income tax obligations.
According to him, the government’s long-term savings initiative is expected to create more opportunities for Russians to prepare for the future while building a financial safety cushion. He explained that state co-financing would be available on a sliding scale, matching participants’ savings on a one-to-one, one-to-two, or one-to-four basis depending on income. In effect, each ruble saved could receive additional support from the state through this co-financing mechanism.
Under the plan, individuals with lower monthly incomes would stand to maximize their benefits, with state co-financing reaching a defined annual amount, while higher earners would access tax deductions up to a specified limit each year. The overarching aim is to empower citizens to save more effectively for the long term while delivering measurable state support for disciplined saving behavior.
Experts contend that the long-term savings program will not only encourage personal financial discipline but also stimulate broader development within the savings and retirement industry. By providing a stable framework and predictable incentives, the program may increase confidence in long-term financial instruments and attract additional institutional participation, contributing to a more resilient national savings infrastructure. This approach aligns with ongoing policy goals to improve retirement readiness and to create a more sustainable balance between public and private retirement funding. Attribution: governmental policy brief and institutional summaries.