Russia's PDS savings scheme thrives but struggles to win young workers
Russia's long-term savings programme, known as PDS, has grown rapidly since its launch. By February 2026, over 11 million contracts had been signed, with nearly 830 billion rubles saved. Yet participation remains low, covering just 8% of the working population.
Many younger and middle-aged Russians show little interest in saving for retirement. Meanwhile, older participants often treat the scheme as a short-term financial tool rather than a long-term investment.
The PDS programme was introduced to encourage long-term savings, with the state doubling personal contributions up to 36,000 rubles annually. In 2024–2025, these contributions delivered average returns of around 20%, making the scheme attractive for quick gains.
Contracts are designed for a 15-year term, but older participants—women aged 55 and over, and men over 60—can withdraw funds at any time without losing accrued returns. This flexibility has led some to deposit money, secure state co-financing, and then withdraw it shortly after. In the third quarter of 2025 alone, retirees pulled out 18 billion rubles from their accounts. A proposal now under debate would require a minimum five-year commitment before penalty-free withdrawals of co-financed funds. However, over 60% of PDS participants are pensioners or near-retirees, for whom a five-year lock-in may be impractical. Despite this, the vast majority of savers—holding over 800 billion rubles—have kept their funds in the programme. Low engagement among younger workers remains a persistent challenge. Without broader participation, sustaining public trust in long-term savings systems could prove difficult.
The PDS programme has accumulated significant funds, but its long-term success depends on balancing the needs of different age groups. If younger Russians continue to avoid saving, the system may struggle to maintain stability. The outcome of the proposed five-year commitment rule could shape how participants use the scheme in the future.
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