How Russians use the long-term savings program: loophole and new rules

      On June 16, 2026, 19:18 Society In 2024, a long-term savings program (LSP) was launched in Russia, allowing citizens to open special accounts in banks and receive government support, tax benefits, and enhanced protection of their savings. However, it soon became clear that citizens of pre-retirement age found a way to use the program for quick access to government support, which caused dissatisfaction among the authorities and the need for changes to the rules. The LSP was designed to encourage citizens to save for the long term. Participants could open special accounts in banks where they deposited their funds. The government co-financed these deposits, adding a certain amount that depended on the citizen's income. The higher the income, the lower the government support, but in any case, it was significant. The main conditions of the program included:

      - The minimum contribution was 2,000 rubles per year.

      - The government added up to 36,000 rubles per year to each deposit. For people with an income of up to 80,000 rubles, the amount was added in full, for those earning up to 150,000 rubles, it was based on the formula "one ruble for every two contributed," and for wealthier citizens, "one ruble for every four contributed."

      - The accumulated funds earned interest, and program participants could receive tax deductions of up to 88,000 rubles annually.

      - Money in LSP accounts was insured up to 2.8 million rubles, which was double the insurance for regular deposits.

      These conditions attracted over 10 million participants who invested 717 billion rubles in the program. However, it soon became clear that some citizens were using the program improperly. The program rules stipulated that participants could withdraw their savings at any time but would lose government support. To retain it, they needed to keep the money in the account for at least 15 years. However, an exception was made for citizens of pre-retirement age (women from 55 years, men from 60 years): they could withdraw all funds without losses. Many elderly people took advantage of this loophole. A year before reaching retirement age, they opened an account, deposited 36,000 rubles, and received the same amount from the government. They then withdrew all the money without waiting for the end of the 15-year period. In just the third quarter of 2025, 18 billion rubles were withdrawn through this scheme. This caused dissatisfaction among the authorities, who recognized the existence of a legal conflict and began working to eliminate it. Deputy Finance Minister Ivan Chebeskov stated that a draft law was being developed to limit the possibility of early withdrawal of funds. Now government support could only be obtained after five years of participation in the program. Those who are already participating in the LSP or withdrew money earlier would not be affected.

      "We are in no way proposing to limit people's rights to their own funds. It is only about ensuring that government money is used strictly for its intended purpose, that is, to encourage a person to keep capital in the program for as long as possible," emphasized Chebeskov.

      These changes are aimed at preventing private pension funds from incurring losses due to early withdrawals. Financial experts believe that the new rules will make the program more attractive to long-term participants, such as pre-retirement age individuals, for whom it will be particularly beneficial. The long-term savings program was initially created as a tool for co-financing pensions. However, it did not gain widespread popularity due to its specificity. Financial market expert Andrei Barkhota noted in a conversation with 360.ru that deposits and pension programs are intended for different purposes. Deposits are designed for short-term investments, while pension programs are for long-term ones. Increasing the co-financing period to five years may divert potential participants' attention from regular deposits. Nevertheless, for a specific target group, including pre-retirement age individuals, the program remains advantageous, especially if they manage to take advantage of the quick benefits before the new rules come into effect. NIA "Nizhny Novgorod" has channels on Telegram and MAX. Subscribe to stay updated on major events, exclusive materials, and timely information. Copyright © 1999—2025 NIA "Nizhny Novgorod". When reprinting, a hyperlink to NIA "Nizhny Novgorod" is mandatory. This resource may contain materials 18+.