Pension assets are growing due to incoming flows from pension contributions and investment income
As of August 1, 2024, Kazakhstan's pension assets in the Unified Accumulative Pension Fund (UAPF) exceeded 20.26 trillion tenge, showing an increase of nearly 2.4 trillion tenge (or 13.4%) over the first seven months of the year. Over the past year, pension assets grew by 3.9 trillion tenge (or 23.7%), DKnews.kz reports.
A significant 96.32% of Kazakhstan's pension savings are formed through mandatory pension contributions (OPV), which amounted to approximately 19.5 trillion tenge as of August 1, 2024 (an annual growth of 23% and a 12.8% increase since the beginning of the year). The amount of pension savings from mandatory professional pension contributions (OPPP) reached 618.14 billion tenge, increasing by 19.6% over the year and by 8.7% since the beginning of the current year. The most significant growth was seen in voluntary pension contributions (DPV), which increased by 47% over the year and 26.2% since the beginning of the year, totaling 6.7 billion tenge.
Since January 1, 2024, additional funds have been credited to contributors' (recipients') pension accounts in the form of employer mandatory pension contributions (OPVR). Over the first seven months of 2024, pension savings from OPVR totaled approximately 120.5 billion tenge.
Inflow of Funds
Pension assets are growing due to incoming flows from pension contributions and investment income. Pension contributions to contributor accounts for January-July 2024 amounted to approximately 1.55 trillion tenge, reflecting a 29.5% increase or over 353.5 billion tenge compared to the same period last year.
All types of contributions have increased: more than 1.36 trillion tenge were credited to individual pension accounts (IPS) under OPV as of August 1, 2024 (19.5% more than in the same period last year), approximately 66.01 billion tenge to IPS under OPPP (up 20.4%), and 1.7 billion tenge to DPV (up 34.4%). Net investment income accrued to individual and conditional pension accounts in the UAPF since the beginning of the year amounted to approximately 1.38 trillion tenge as of August 1, 2024. This volume increased by nearly 620.3 billion tenge (or 81.5%) compared to the same period last year.
Payments and Transfers
Outflows in the form of payments from all types of contributions and transfers to insurance organizations from the UAPF for the first seven months of 2024 exceeded 608.64 billion tenge, which is 322.4 billion tenge more (or 112.7%) than the volume of payments in the same period last year.
One-time pension payments (EPV) for improving housing conditions and medical treatment amounted to 266.16 billion tenge. Payments related to reaching retirement age amounted to approximately 114.5 billion tenge, 37.4% higher than last year's figures.
During this period, there were also payments of 34.83 billion tenge for inheritance, more than 22.21 billion tenge for relocation abroad, over 1.8 billion tenge to people with disabilities, and approximately 5.9 billion tenge for funeral expenses. More than 163.3 billion tenge were transferred to insurance organizations.
The average monthly pension payment from the UAPF related to reaching retirement age amounted to 33,847 tenge, with the maximum monthly payment reaching 945,752 tenge.
Number of IPS
The total number of pension accounts in the UAPF as of August 1, 2024, was 16.46 million. Among these, the number of individual pension accounts (IPS) of contributors (recipients) in the UAPF as of August 1, 2024, was approximately 12.4 million, including 11.07 million under OPV, 690,700 under OPPP, and 425,000 under DPV.
The number of conditional pension accounts in the UAPF, which record information on incoming OPVR in accordance with the legislation of the Republic of Kazakhstan, was approximately 4.08 million.
Photo credit: Ⓒ Ratel.kz / Aidyn Olzhayev.
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