The Long-Term Savings Program (LTSP)

The Long-Term Savings Program (LTSP) is a government initiative launched in Russia aimed at stimulating long-term savings of citizens to form 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 (NPF).

Main features of the program:
🔷Voluntary participation

🔷Government support:
-The government co-finances the contributions of program participants for 10 years, the maximum co-financing amount is 36,000 rubles per year, the amount of co-financing depends on the amount of contributions and the participant’s income.

🔷Tax benefits:
Program participants can receive a tax deduction on the amount of personal contributions, up to 13% of 400,000 rubles per year.

🔷Cumulative nature:
Funds are formed in special accounts in the NPF, and can be used after 15 years from the date of the agreement or upon reaching the age of 55 (for women) and 60 (for men).

🔷Early access to funds:
In exceptional cases, for example, in case of expensive treatment or the loss of a breadwinner, funds can be received early.

🔷Protection of funds:
Funds placed under the program are insured by the Deposit Insurance Agency (DIA).

🔷Transfer of pension savings:
You can transfer funds from your funded pension to the DDS program.

How it works:

1. Selecting an NPF
2. Concluding an agreement:
   An agreement is concluded to open an account under the long-term savings program.
3. Making contributions:
   The program participant makes personal contributions to the account.
4. Receiving co-financing:
   The state co-finances contributions for 10 years, starting from the year following the first contribution.
5. Funds management:
   The NPF invests funds received from contributions and co-financing and accrues investment income.
6. Payments:
   After 15 years or upon reaching retirement age, the participant receives funds from the account.

The long-term savings program is a tool for providing yourself with additional income in the future.

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