Embark on a journey towards your desired future at any stage: the benefits of enrolling in the extended savings plan
When Dreams Meet Reality: Uncovering Long-Term Savings Programs
Heard the buzz about SberNPF's Long-Term Savings Program (LSP)? Now holding the title of the most popular savings program in Russia, it's not just a piggy bank - it's a powerful tool for turning dreams into reality! Here's the lowdown on this revolutionary program, complete with real-life insights for all ages.
The LSP, somewhat fresh on the block since its launch in early 2024, isn't just a run-of-the-mill savings tool. Imagine it as the extra support you need to secure your life's ambitions and maintain a cushy lifestyle: from your very own home to that long-awaited round-the-world trip, or even boosting your pension. And the best part? It's all thanks to the backing of the state.
The LSP involves funneling your long-term savings into a private pension fund (NPF) via voluntary contributions. This isn't just about saving.Think of it as having your very own private 'piggy bank' where your money grows at a trance-inducing pace.
So, how does it work in action?
- Pick an NPF that's part of the LSP.
- Regularly stock up your LSP account with at least 2,000 rubles a year to qualify for state co-financing.
- The state pitches in a sizable 36k annually for the first ten years of your participation.
- Your NPF invests your savings and calculates the investment returns, ensuring the distributed income never goes below zero over a five-year horizon.
Now for the exciting stuff:
- After 15 years or upon reaching the golden age of 55 for women and 60 for men, you can either withdraw the entire sum at once or set up regular payments. Sounds like a sweet deal, right? Well, here's the best bit: in case of dire life situations (like loss of breadwinner or the need for exorbitant medical treatment), you can withdraw funds earlier, no strings attached.
Who's Joining the Party?
According to reports from the Central Bank, over 4.6 million individuals have joined the LSP, pooling an impressive 330 billion rubles into their accounts. What's more intriguing is the diverse crowd opting for this program. Let's explore who's taking part in this savings extravaganza:
- Young guns eager to secure their first apartment, launch a business, or fund their education are all jumping on board.
- Families seeking to save for their children's higher education, which continues to escalate each year (with budget places in universities becoming scarce), will find a perfect match in LSP. Alongside this financial security, LSP helps reduce the stress of unexpected expenses. Plus, if you envision doing a Vulsini's retirement, LSP can help you generate passive income—a bonus monthly paycheck, you might say.
- Those in their 40s and 50s are looking ahead to a comfortable retirement, dream getaways, or the chance to realize dormant dreams: LSP has got their backs.
Passive Income Awaits
One of the unique benefits of the LSP is the option to transfer funds from the mandatory pension system (OPS) to your LSP account, thereby unlocking them. This way, you won't lose your insurance pension rights, plus you get the advantage of extra insurance to protect your contributions and investment earnings (a significant perk, seeing as most OPS earnings aren't insured).
Moreover, for participants with a substantial sum in their OPS account (above 411k), a meager pension of around 1k per month will be assigned after retirement. But, if you'd rather have the whole chunk at once, you'll be glad to know that many LSP participants can withdraw more than this amount, providing more flexibility in decision-making.
Worried about unexpected medical bills or loss of income and need your OPS money pronto? Fear not! By shifting these funds to LSP, you can access them earlier.
You can join the LSP at any participating NPF. Keep your ears open for special offers and bonuses. For instance, SberNPF clients, who transfer their cumulative pension funds to the LSP in 2025, can participate in a mega draw for 5 million rubles and hundreds of valuable prizes!
Exclusive Perks:
- Tax Refunds: A portion of your contributions can be deducted for tax purposes (up to 88k annually, depending on the NDF rate).
- Insurance Protection: Your contributions, investment income, and transfers (including co-financing and investment returns) are fully protected by the Deposit Insurance Agency (DIA) up to 2.8 million rubles.
Saving money isn't always a walk in the park, but with the backing of the state, it's sure to get smoother and more straightforward. Why wait? LSP - it's high time to secure your dreams, today!
DISCLAIMER:This write-up provides general information about the LSP in SberNPF. For specifics on eligibility, contribution structures, investment options, state co-financing, and withdrawal conditions, consult SberNPF's official website or contact them directly. Remember, tax implications may vary based on individual circumstances, so it's essential to seek professional tax advice before making any decisions.
Cheers to your future dreams and financial freedom! 🥳🚀🎉🎊✨👀💼🏠✈️🎓🌐💪💸🔑💰🌱🤩💃🕺💃🕺💖💓💖💓
- The Long-Term Savings Program (LSP) can be a valuable tool for business owners, as they can use their savings to secure future investments, such as expanding their business, funding research and development, or acquiring new assets.
- In addition to securing long-term financial stability for personal aspirations, the LSP can also serve as a means to manage personal-finance responsibilities, offering tax refunds and insurance protection for eligible contributions.
