Approximately 1 million unique applicants used their pension savings to purchase housing and/or medical treatment. Pension savings, as you know, can be used by citizens an unlimited number of times within the amount of pension savings in the UAPF available for withdrawal for housing, medical treatment or transfer to management companies.
Since January 2021, as of May 1, 2023, the UAPF has fulfilled 1,361,040 applications from contributors (beneficiaries) for the use of pension savings to improve housing conditions. UAPF transferred more than KZT3.2 trillion to special accounts of Kazakhstanis opened in banks-authorized operators. At the same time, the average amount of lump-sum pension payments amounted to about KZT2.35 million. The number of unique applicants was 692,936. Thus, some contributors (beneficiaries) repeatedly used the right to lump-sum pension benefits for housing.
The most active in this direction were residents of Almaty (17.55%), Astana (13.96%), Mangistau region (10.31%). Detailed information is available on the website www.enpf.kz in the “Indicators” section: for what purposes Kazakhstanis apply for lump-sum pension payments and by regions (subsections “Lump-sum pension benefits for improving housing conditions by goals” and “Lump-sum pension benefits for improving housing conditions”, respectively).
When analyzing the purposes for which contributors (beneficiaries) use their savings, we can draw the following conclusions: about 36% of all applications are the acquisition of a dwelling in the property under civil law transactions (final settlement) and the construction of an individual residential building (if available in ownership of a land plot), about 21% of applications - for the use by contributors (beneficiaries) of pension funds under housing construction savings programs, about 21% of applications - in order to replenish the contribution to housing construction savings for further accumulation, about 20% of applications - for the purpose of using mortgage housing loan: from down payment to refinancing and full repayment.
To date, authorized operators accepting applications for the use of part of pension savings are Otbasy Bank Housing Construction Savings Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Bank Freedom Finance Kazakhstan JSC.
It should be noted that about KZT469.46 billion was returned to the individual pension saving accounts (IPSA) of contributors (beneficiaries) from authorized operators due to the fact that lump-sum pension benefits by Kazakhstanis were not used on time, at the request of the applicant and for other reasons.
UAPF also executed 414,326 applications for medical treatment in the amount of KZT334.08 billion. The average withdrawal amount is about KZT0.8 million. The number of unique applicants was 302,034. Thus, as in the case of using pension savings for housing, some Kazakhstanis used their funds several times.
More than 96% of applications were executed for dental services, 2.71% of applications for ophthalmological services. Less than 1% of pension savings were used for other medical areas.
At the same time, KZT33.13 billion was returned to the IPSA of contributors (beneficiaries) in the UAPF, these funds were not used within the established time frame, at the request of the applicant and for other reasons.
You can get acquainted with the current statistics on the use of pension savings for treatment on the website www.enpf.kz in the section "Indicators" - "Lump-sum pension benefits for medical treatment".
As of May 1 of the current year, from February 18, 2021, the investment portfolio manager (IPM) transferred KZT8.9 billion, the UAPF executed 5,968 applications. The average transfer amount is about KZT1.5 million. Detailed statistics on the transfer of pension savings to trust management is also available on the www.enpf.kz website in the section "Indicators" - "Transfer of pension savings to management companies".
At the moment, UAPF has concluded agreements on trust management of pension assets with five IPMs. You can get acquainted with information about them and study their investment declarations on the website www.enpf.kz in the section "Services" - "Register of Investment Portfolio Managers". It should be noted that out of KZT8.9 billion - 44.29% or KZT3.9 billion were transferred to Jusan Invest JSC, 28.04% or KZT2.5 billion to Halyk Global Markets JSC, 16.14% or KZT1.4 billion in BCC Invest JSC, 10.05% or KZT0.9 billion in Centras Securities JSC, 1.49% or KZT132 million in Halyk Finance JSC.
After the initial transfer of pension assets to IPM trust management, the contributor has the right not more than once a year to submit an application to the UAPF for the transfer of his pension savings to trust management from one IPM to another. For the period from March 2022 to April 2023, 76 applicants changed their decision on the choice of IPM: UAPF fulfilled 102 applications for transfer from one IPM to another for a total of KZT323 million.
101 people decided to use the right to return their savings under the management of the NBRK two years after the initial transfer of pension savings to IPM trust management. From March 15 to April 30, 2023, UAPF executed 168 applications for the transfer of funds to the NBRK from IPM for a total of 625 million tenge.
Recall that after receiving pension assets from UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration.
During the period when pension savings are under the management of the National Bank of the Republic of Kazakhstan until the contributor reaches retirement age, there is a guarantee of the safety of pension savings, taking into account the level of inflation. When transferring pension savings under the management of IPM, the state guarantee is replaced by a guarantee of the management company to ensure the minimum level of return on pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of IPM operating on the market.