The Ministry of economic development came up with a way to encourage Russians to save for retirement

Photo: Oleg Yakovlev / RBC

The Ministry of economic development have figured out how to stimulate the Russians to save for their retirement. The Ministry are discussing the idea of reducing personal income tax for those who have decided to allocate more for retirement from the salary, and to raise those who do not want to do

That the Ministry is discussing the idea that will encourage the Russians to postpone retirement on their own, write on Friday “Vedomosti” referring to Federal officials.

According to information sources, the Ministry is discussing the possibility to raise or to lower the rate of personal income tax depending on contributions to individual retirement capital. Thus, according to the idea of Ministry, if a person decides to postpone retirement 10% of their wages, and personal income tax rate he will be – 10%. If he doesn’t want to postpone retirement, the rate of personal income tax will rise to 15%. 13% rate will remain for those who postpones retirement 4% of salary.

Yet, as noted by the interlocutors of the newspaper, the idea is discussed only within the Ministry, the calculations are not yet final.

One of the officials said that the idea of Ministry like first Deputy Prime Minister Igor Shuvalov. However, the Ministry don’t know about this, the newspaper adds. The representative of Shuvalov told the newspaper that the official proposals of the Ministry of economic development to the office of first Vice-Premier has not been received.

The representative of the Ministry of Finance declined to comment. In the Central Bank publication said that it is not the regulator not familiar with this initiative, but expressed willingness to consider it in the case of receipt.

 

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