Russia's finance ministry has proposed automatically moving Russians' pension savings into a long-term savings program.
Russia's finance ministry has proposed automatically moving Russians' pension savings into a long-term savings program.
The draft law would convert the savings of 36.5 million so-called 'silent' savers, people who never chose a private fund, plus clients of 24 private pension funds, according to RBC. In total, up to 6.6 trillion rubles could be shifted, including 2.98 trillion rubles managed by the state development bank VEB.
The idea is to put idle pension money to work in long-term investments. Critics of such schemes usually ask the same question: whether savers keep real control over money they never actively chose to move.
If adopted, the change would touch nearly every working Russian's retirement savings, which is why a technical-looking finance bill is drawing political attention in Moscow.
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