Russia has proposed a pension tax deduction with a limit of 400 thousand rubles

Russia has proposed to introduce a tax deduction to stimulate citizens independently to save for a supplementary pension, the newspaper "Izvestia", citing a joint letter to the Central Bank's two pension self-regulatory organizations (SROs) — ANPP and NAPF.

SRO consider it necessary to increase the limit for the calculation of the benefit amount up to 400 thousand rubles that the Russians could return to 52 thousand annually from voluntary contributions for future retirement. Another proposed option is to increase the limit to six percent of salary.

Also, the authors expressed the opinion that the motivation for the population to voluntarily save money for the future insufficient. The current tax deduction is available amounting to 120 thousand rubles a year (15.6 thousand). It consists of four components: health, education, life insurance and pensions. According to the SRO, the deduction is not indexed for more than a decade.

The Bank of Russia commented edition of this initiative and noted that discussion will need to assess the potential effect of its implementation.