Long-Term Savings Program (LTSP)

The Long-Term Savings Program (LTSP) is a government initiative launched in Russia aimed at stimulating long-term savings for citizens to build up their pension capital or other long-term financial goals.

Program participants receive government support in the form of co-financing, tax deductions, and investment income from non-state pension funds (NPFs).

How it works:

Choosing an NPF.

Contract:
An agreement is signed to open an account under the long-term savings program.

Contributions:
The program participant makes personal contributions to the account.

Co-financing:
The government co-finances contributions for 10 years, beginning the year following the first contribution.

Fund management:
The NPF invests the funds received from contributions and co-financing and accrues investment income.

Payments:
After 15 years or upon reaching retirement age, the participant receives funds from the account.

A long-term savings program is a tool for securing additional income in the future.

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