Long-term savings Program in Russia: a complete guide
In Russia, the state Long-term Savings Program (DS) has been in effect since January 1, 2024, designed to help citizens save for important life goals. Thousands of Russians have already joined the program.
The essence of the program
The program allows you to accumulate funds for future use for such purposes as:
- Purchase of real estate;
- Children's education;
- Generating additional income for retirement;
- Solving special life situations.
The main feature of the program is government support, which allows you to increase your savings.
How are savings generated?
Accumulations are formed from several sources:
- Personal contributions of the program participant.
- Employer's contributions (if desired).
- Co-financing from the state (see below).
- Pension savings transferred to the program.
- Investment income. Your funds will be invested by the selected non-governmental pension fund (NPF) to increase them.
Conditions for payments
You can use the savings when one of the conditions occurs.:
- After 15 years from the date of conclusion of the agreement.
- Upon reaching retirement age: 55 years for women, 60 years for men.
- Prematurely in special life situations (for example, the need for expensive medical treatment or the loss of a breadwinner).
- Types of payments
- The participant can choose a convenient format for receiving funds.:
Lifetime payment.
- Periodic payment for a fixed period.
- Lump sum payment (available after 15 years or if the amount of lifetime payments is less than 10% of the pensioner's subsistence level in the Russian Federation).
- Government support: the main advantage
The State annually co-finances the contributions of participants for 10 years from the date of commencement of payment. This is a key advantage of the program.
Conditions for receiving state support:
It is necessary to make at least 2,000 rubles of personal contributions during the year.
- The maximum amount of co-financing is the same for everyone and amounts to 36,000 rubles per year.
- The co-financing ratio (how many rubles the government will add for each of your rubles) depends on the average monthly income of the depositor. The lower the income, the higher the coefficient.
- Important: government support does not apply to pension savings transferred to the program as a one-time contribution.
How do I join?
To join the program, you must select a non-governmental pension fund (NPF), which acts as the program operator.
For a more detailed study
The Bank of Russia and the Ministry of Finance of the Russian Federation have prepared detailed instructions on the program. All relevant information, conditions and calculations can be found on the official website of the Ministry of Finance of Russia.