What are the reasons for changes in the amount of pension savings?

Incoming pension contributions are not just kept in individual pension saving accounts, but are invested and generate income for contributors. At the same time, the investment of pension savings is carried out by the National Bank and investment portfolio managers (IPM) in various financial instruments in various sectors of the economy, in different currencies. However, the situation in financial markets may change under the influence of economic, political and other factors that affect income in the form of interest on securities (deposits and other transactions), income in the form of market and currency revaluation of financial instruments, income on assets located in foreign countries. management, etc. Therefore, in certain periods, investment income can be both positive and negative, which is reflected in the total amount of pension savings. At the same time, diversification of the investment portfolio, when income on some instruments covers temporary losses on others, ensures the safety and sustainable profitability of pension savings in the long term. After all, let us remind you that pension savings are long-term investments and you need to analyze the amount of investment income for a period of at least one year.

But even if the instability of the financial markets is long-term and the real return is lower than inflation at the time of receiving the right to payments, the state guarantees beneficiaries the safety of compulsory pension contributions (CPC) and compulsory occupational pension contributions (COPC) under the management of the National Bank of the Republic of Kazakhstan in the amount of funds actually contributed from taking into account the level of inflation. Management companies are responsible for the safety of contributions with their own capital and guarantee the provision of a minimum level of return, which is calculated based on the weighted average return on pension assets transferred to the management of the pension insurance system operating on the market.