The expert explained the mechanism of state co-financing of children's savings

Children's accounts opened under the long-term savings program (LDS) will increase each parent's contribution at the expense of the state by a fixed amount according to the established rules. Sergey Belyakov, President of the National Association of Non-Governmental Pension Funds (NAPF), told Izvestia about this on May 26.

"A child will be able to receive savings upon reaching the age of majority. The money in the account will be his personal capital, which he can use at his discretion. These funds can be used to form a future pension, purchase real estate, or invest in starting your own business," explained Belyakov, whose organization is involved in the discussion of the project.

In his opinion, it would be optimal for the state to co-finance the children's accounts of the PDS for 24 thousand rubles annually for at least 10 years.

"Moreover, the conditions of the program could vary depending on the number of children in the family. For large families, the scheme is best suited when the state adds the same amount of money as the parents contributed ("ruble for ruble"). After all, it is in such families that the expenses for children are as high as possible and create a large burden on the family budget," he suggested.

Belyakov added that parents who have opened a children's personal income tax account will presumably be able to take advantage of a single increased tax deduction for long-term savings totaling up to 1 million rubles per year for the whole family.

"The benefit will apply to any type of long—term savings, including personal income tax, individual investment account (IIC) and voluntary life insurance contracts," the NAPF president said.

He noted that the children's PDS product can be implemented as early as 2025.

On May 26, it was reported that the Ministry of Finance supported state co-financing of children's accounts opened under the PDS. After the launch of co-financing, the demand for children's PDS may grow 2-3 times in the first two years, Vladimir Chernov, analyst at Freedom Finance Global, expects. It will be especially interesting for families with children under five years old.