Pension savings of people in Kazakhstan as of June 1 amount to 11.7 trillion tenge, having increased by 17.9% compared to the same period last year. On average, over the past five years, the amount of pension savings of people is growing by 19.2% per year.
The growth is observed for all types of savings. The accumulation on obligatory pension contributions increased by 17.7% and amounted to 11.4 trillion tenge, or 97.6% of the total. Meanwhile, the savings on mandatory professional pension contributions increased by 27.3%, to 275.6 billion tenge, and savings on voluntary pension contributions - by 10.5%, up to 2.1 billion tenge.
The total amount of pension savings consists of pension contributions and investment income. Since the year beginning the pension savings have increased by 8%. The largest contribution to the pension asset growth was made by the investment income received. The sum of pension contributions for the five months of 2020 amounted to 428.2 billion tenge, while the amount of investment return for the same period immediately reached 520.4 billion tenge. In general, for the period of the UAPF pension asset management carried out by the National Bank of the Republic of Kazakhstan from September 2013 to the present moment, the investment return in the structure of people’s pension savings amounted to about 30%, or 3.8 trillion tenge.
In the current year, despite the global economy instability, the UAPF investment income increased more than 2 times, or by 270.3 billion tenge, compared to the same period last year. The largest share of the income structure was a return in the form of interest on securities, including placed deposits and reverse RP transactions, which grew by 19.8% and made 324.1 billion tenge. The income from the foreign currency revaluation increased to 227.8 billion tenge this year. The return on assets managed externally also increased by 2.4 times to 15.3 billion tenge. The income on pension assets over the past 12 months has been 8.9% with inflation of 6.7%. Thus, the real return on pension assets is positive and amounts to 2.2%.
It is worth noting that pension savings are long-term investments, and the size of investment income should be analyzed for a period of at least one year. In general, investment income is a variable value and can be both positive and negative in the short term. However, in the long run during the UAPF existence the investment income has been positive, which indicates the high efficiency of pension asset management.
Photos are from open sources.