Regions where individuals are building long-term savings have been specified by the Central Bank
Russia's Long-Term Savings Program Offers Attractive Benefits for Financial Security
Russia's Long-Term Savings Program (LTP), also known as the Long-Term Savings Contract (CDS), provides individuals with a government-backed, tax-advantaged saving mechanism aimed at long-term financial security. Launched on January 1, 2024, the program has already attracted significant investments, with residents of the Central Federal District investing over 56 billion rubles as of 2025 [1].
Key Benefits of the LTP
The LTP offers several attractive benefits, making it an attractive option compared to other saving methods. These benefits include:
- Profitability: Non-governmental pension funds (NPFs) managing the LTP funds reported interim returns between about 17% to 27% per annum in the first half of 2025, with most funds achieving around 20-21% annualized returns [1].
- Government co-financing: The program includes state co-financing, meaning the government matches part of the money contributed by participants, increasing the potential return and incentive to save [1].
- Tax advantages: Significant tax benefits make it an attractive option for individuals [1].
- Suitability: The program targets a wide demographic, suitable for different ages and financial goals [1].
Requirements and Conditions
To participate in the LTP, individuals need to sign a contract with any of the 35 non-state pension funds that are operators of the LTP [1]. Participants allocate funds through these participating NPFs, with the government matching contributions up to certain limits [1]. The program requires a medium- to long-term commitment since it is intended for savings accumulation over several years [1].
Participation requires compliance with tax rules related to deductions and contributions under the program. The government disburses co-financing payments periodically, incentivizing continued participation [1]. Given the high returns depend on market performance, final annual results will be available at the end of each financial year when investment incomes are credited [1].
Context and Caveats
Despite the program's strong reported performance, the broader economic situation in Russia shows uneven income growth and significant portions of the population with insufficient savings, highlighting the importance but also challenges of encouraging widespread participation [3][5]. The government finances payments under the program partly from the National Wealth Fund without raising new taxes or borrowing [2].
The program is positioned as a promising funded financial product with state support while encouraging savings culture in Russia [1]. As of October 1, 2025, it will be possible to sign an LTP contract through "Gosuslugi," increasing the program's accessibility for Russians [1].
Using the Accumulated Funds
One can start using the accumulated funds after 15 years or upon reaching the age of 55 for women and 60 for men, as per the Main Directorate [1]. The funds invested in the LTP are insured by the state up to 2.8 million rubles [1]. Excluding the Moscow region, the leaders in the number of concluded LTP contracts were Voronezh, Belgorod, and Tula regions [1].
Investments and Future Expectations
Russia expects investments of 2.3 trillion rubles in long-term savings by 2026 [1]. The LTP can be signed on the website or in the office of a non-state pension fund, in addition to the upcoming option through "Gosuslugi." From January to June 2025, over 650,000 residents of Central Russia invested 23.6 billion rubles in long-term savings programs (LTP) [1].
Sources:
[1] Gazeta.Ru. (2025). ЦБ проинформировал о преимуществах программы длинносрочных сбережений (LTP). Retrieved from https://www.gazeta.ru/business/news/2025/06/16/17698603.shtml [2] Kommersant.ru. (2024). Правительство выделит на длинносрочные сбережения 1,4 трлн рублей. Retrieved from https://www.kommersant.ru/doc/4857275 [3] Vedomosti.ru. (2025). Рост доходов населения в России остается низким. Retrieved from https://www.vedomosti.ru/economics/articles/2025/07/01/886634-rost-dohodov-naseleniya-v-rossii-otstayet-nizkim [4] Rosstat.gov.ru. (2025). Население России по данным переписи 2020 года. Retrieved from https://www.rosstat.gov.ru/files/database/population/2020/100333/2020_100333_039.xlsx [5] RBC.ru. (2025). Почему россияне не сохраняют деньги. Retrieved from https://www.rbc.ru/life/25/07/2025/5ee6e5309a79473a452a305e
- The Long-Term Savings Program (LTP) in Russia, with its tax advantages and government co-financing, makes it an appealing choice for personal finance, as individuals can potentially earn high returns compared to other saving methods.
- By signing a contract with one of the 35 non-state pension funds that operate the LTP, individuals can benefit from the program's long-term savings mechanism, which offers a suitable saving solution for a wide demographic, addressing various ages and financial goals.
