Residents of Krasnodar Region Secure 1.4 Billion Rubles, Ranking among Top 3 Most Active in Russia's Financial Engagement
In the southern regions of Russia, there's been a noticeable surge in residents transferring their pension savings to the Long-term Savings (LTS) program, with an increasing number of residents topping up existing contracts as well.
However, the search results do not provide specific data on the number of participants in Russia’s LTS Program in 2024 by region, nor do they identify regions outside Moscow, Moscow Oblast, Krasnodar Krai, and Nizhny Novgorod Oblast with the highest participation.
Despite the lack of comprehensive data, it's clear that the trend is significant. In late August alone, over 118,000 residents from Kuban and Rostov received state support for their long-term savings, totalling 2.15 billion rubles. State support was also provided to 47,200 people in Rostov Oblast, amounting to nearly 750 million rubles, and over 71,000 residents from Kuban received 1.4 billion rubles in support, with an average LTS support check of around 19,000 rubles.
The increasing trend extends to younger southern participants, with an uptick in younger residents joining the Program over the past three months. The youngest participants in the LTS program may be as young as 20, while the oldest may be over 40.
Intriguingly, the top 3 most active regions for LTS account openings were Moscow and Moscow Oblast, Krasnodar Krai, and Nizhny Novgorod Oblast. Surprisingly, Donetsk residents also ranked among the most frequent LTS account openers last year, with the state co-financing approximately 750 million rubles for Donetsk residents.
The state co-financing for LTS program contributions in 2024 was completed in August, and in total, this state support was provided to 1.8 million people across Russia, amounting to 32 billion rubles.
The PDS program involves annual state contributions to individual accounts during the first 10 years of a person's participation, with a minimum annual contribution of 2,000 rubles. To receive the maximum annual amount of 36,000 rubles, an annual contribution of 144,000 rubles is made to the PDS. The co-financing amount depends on the voluntary contribution and the participant's official average monthly income. For incomes up to 80,000 rubles, the ratio is 1:1. For incomes between 80,000 and 150,000 rubles, half of the contribution is added (1:2). For incomes over 150,000 rubles, a quarter is added (1:4).
Interestingly, couples or multiple generations of the same family are joining the PDS program in southern Russia. The program offers a unique opportunity for families to save for retirement together, fostering a sense of financial security and stability.
As the trend continues, it's clear that the LTS program is becoming an increasingly popular choice for residents across Russia, particularly in the southern regions. The program provides a valuable opportunity for individuals to save for their retirement and secure their financial future.
