Long-Term Investment and Savings: Legislative Trends and Legal Challenges

Long-term investments and savings enable people to fund their major life goals and build up pension capital. It is beneficial for the government to create long-term investment opportunities, since this leads to the increased well-being of citizens, reduces the burden on the social system, and supports economic growth. Russia has created and is developing a whole range of tools to stimulate long-term savings: personal investment accounts, long-term incentives, and voluntary life insurance. Are there any flaws in these tools? Are additional measures needed? Other countries are increasingly introducing mandatory or semi-mandatory savings mechanisms, such as mandatory pension savings (the second level of the pension system), auto-enrolment in private pension plans for employers, and mandatory corporate or industry retirement plans. How ethical and effective is it for the government to “force savings” on people? Does Russia need such mechanisms and what are the alternatives?