How the Russian pension system works

The Russian pension system has several levels: compulsory pension insurance, non-state pension provision and personal voluntary savings, including through life insurance. Here are the main laws and what they mean for a working person.

Compulsory pension insurance

The basics are set out in Federal Law No. 167-FZ "On Compulsory Pension Insurance in the Russian Federation". Employers and individual entrepreneurs pay insurance contributions, and information about earnings and length of service is recorded on the insured person's individual personal account.

Since 1 January 2023 the insurer under compulsory pension insurance has been the Pension and Social Insurance Fund of the Russian Federation (Social Fund of Russia, SFR), created by merging the Pension Fund and the Social Insurance Fund.

The insurance pension

The conditions for an old-age insurance pension are set by Federal Law No. 400-FZ "On Insurance Pensions". Three conditions must be met:

  • retirement age — after the transition period that began in 2019 ends, 65 for men and 60 for women;
  • insurance record — at least 15 years;
  • individual pension coefficient (points) — at least 30.

The size of the insurance pension depends on the points accumulated, which in turn depend on officially declared salary and length of service. The law provides for categories of citizens who retire early.

The funded pension and non-state pension funds

The funded pension is governed by Federal Law No. 424-FZ "On the Funded Pension". Since 2014 no new contributions have been directed to the funded component — a so-called moratorium that has been extended several times. Savings formed earlier are preserved and invested by the Social Fund or a non-state pension fund (NPF).

Non-state pension funds are regulated by Federal Law No. 75-FZ "On Non-State Pension Funds" and operate under a Bank of Russia licence.

The long-term savings programme

Since 2024 the long-term savings programme for individuals (PDS) has been in place: a person voluntarily pays money into an NPF, may transfer pension savings there and receives state co-financing on the terms set by law. Programme funds are insured through the Deposit Insurance Agency.

Life insurance as a way to save for retirement

Another tool is savings life insurance (NSZh) with an insurance company. Under such a contract you pay regular premiums and receive the accumulated sum at the end of the term, while your life and health are insured throughout.

  • For life insurance contracts concluded on or after 1 January 2025 for at least 10 years, the long-term savings deduction (Article 219.2 of the Tax Code) has been available since 1 September 2026 — within the overall limit of RUB 400,000 a year shared with the PDS, non-state pension provision and type-3 individual investment accounts.
  • From 1 January 2027, voluntary life insurance contracts are protected by a guarantee scheme operated by the Deposit Insurance Agency. More in our article on guarantees of insurance payments.
  • Terminating the contract early is usually unprofitable: only the surrender value is paid.

What to do now

  1. Check your individual personal account via the Gosuslugi public services portal: length of service, earnings and points accumulated.
  2. Find out where your pension savings are held if they were formed before 2014.
  3. Estimate the income you want in retirement and compare it with the forecast insurance pension.
  4. Close the gap with voluntary tools — PDS, savings life insurance, personal savings — taking into account terms, risks and tax benefits.

Polis Re specialists will help you compare savings life insurance programmes from different insurers. Send a request and we will select options for your goal and term. Other overviews are in the Laws section.