Retirement assets are in the UAPF investment account with the National Bank. UAPF has a personal record-keeping of pension savings of depositors (recipients) on their individual pension accounts (IPA).
Pension savings are recalculated and revalued by the UAPF on a daily basis with reference to the investment income received. The investment income amount varies and depends on many factors, including the current market value of the investment and exchange rates. As a result, the investment income can change, both upward and downward. Potential negative fluctuations in investment income on the depositors' IRAs are temporary and observed in the short term. In the medium to long term, investment returns are generally positive. Therefore, it is correct to assess the investment results based on the results of a longer period, one year at least.
The investment return on retirement assets was 10.92% with inflation of 7.5% in 2020. As a result, the real return as of 2020 was 3.42%, and the investment income received during 2020 amounted to 1.3 trillion tenge.
The investment income received by depositors since the beginning of the funded pension system exceeded 5.5 trillion tenge and formed more than 43% of pension assets. The accumulated return on investment since 1998 (the beginning of the funded pension system's operation) amounted to 602.9%, with the accumulated inflation 496.65%.
Thus, the real (i.e., exceeding inflation) accumulated return on pension assets over the past 23 years, is positive and amounts to 106.25% as of January 1, 2021.
Source: https://www.enpf.kz/ru/about/press-center/news/index.php?ELEMENT_ID=11598
Photos are from open sources.
