This summer Sberbank customers seriously consider joining non-state pension plans

Jul 31, 2020

In summer 2020, Russians have become more interested in private pension savings. About 2,700 new customers start making retirement savings every month using personal pension plans (PPP) by NPF of Sberbank.

They are increasingly using remote channels to do that: almost 48% of agreements are signed via the Sberbank Online mobile app and on the NPF of Sberbank website. The number of new agreements, applied for via Sberbank Online, increased eight times in June 2020, compared to March.

The size of deposits also increased. The down payment in June averaged RUB 4,800, being one-third larger than in March. The average monthly payment in October 2019 when customers were allowed to top up their PPPs online were RUB 900. It increased to RUB 1,700 in April 2020 and to RUB 1,900 in June. NPF of Sberbank registered more than two dozen cases when customers added RUB 100,000, RUB 200,000 and RUB 500,000 to their PPPs at once in May–June 2020.

Igor Mamontov, Vice President, Director of Investments and Savings, Sberbank,

“We can see personal pension plans becoming more popular among the banks’ customers. First of all, this is due to the product becoming available via Sberbank Online, and its purchase being 1.5% more affordable than at the bank’s branches. The payments and investment income are tax-free. The earlier young people start making retirement savings the bigger their additional non-government pension will be. For example, if a 25-year-old saves daily an average of RUB 120, the price of two ice-creams, to deposit into one’s personal pension plan, he or she will receive about RUB 50,000 every month as an addition to the government pension after retirement.”

A PPP lets you save up for retirement comfortably by choosing a flexible schedule and size of payments. Your accumulated funds will also be growing annually due to investment income. According to the results of 2019, the yield on Targeted PPPs with NPF Sberbank amounted to 9.64% per annum.  The funds you save up under your PPP enjoy a special legal status: they will not be divided at divorce, can’t be claimed by third-parties but can be inherited. At the accumulation phase, contributions and investment income are not taxed. You can get an annual 13% tax deduction of up to RUB15,600 on the money you deposit into your PPP.

PPPs of NPF by Sberbank became available in the Investments and Pensions section of Sberbank Online in March 2020. The first minimum deposit under the plan is set at RUB2,000 and the next ones need to be equal to or exceed RUB1,000. With Sberbank Online you can also top-up your savings, enable an automatic payment option, track your savings, and accrued investment income.