I decided not to withdraw my pension savings beyond the sufficiency threshold, what risks and opportunities do I have?
Kazakhstan's accumulative pension system is designed in such a way that it is maximally protected from risks. For 23 years, despite a number of financial crises in the global economy, it has remained stable. To date, Kazakhstan is the only country in the world where there is a state guarantee of the safety of citizens' pension savings from inflation. The Law "On Pension Provision in the Republic of Kazakhstan" guarantees recipients the safety of mandatory pension contributions and mandatory occupational pension contributions to the UAPF in the amount of contributions actually made, taking into account the inflation rate at the time of obtaining the right to pension payments. If by the time of retirement the savings will be below inflation, then this difference is made up to the recipient at the expense of the republican budget when they receive their first pension payment from the UAPF.
If you are referring to the risks when deciding on the use of pension savings, then we would like to draw your attention to the fact that the early withdrawal of pension savings will affect, first of all, the state of the individual pension account of the depositor who withdrew the money, and, as a result, his future pension payments. The accounting of pension savings of citizens is conducted individually and savings are formed from personal pension contributions, investment income and its personal withdrawals (or pension payments), if any.
It should be understood that the funds that remain on the IPS within the threshold of minimum sufficiency allow providing the depositor with pension payments in the amount not lower than the minimum pension. This is a small amount, which consists of payments from the UAPF and the minimum basic pension, which is 54% of the subsistence minimum. In order to save on an individual pension account an amount sufficient to provide the recipient with at least a minimum payment upon reaching retirement age, the thresholds for the sufficiency of pension savings are recalculated annually. At the same time, for a decent pension provision, it is necessary to have good savings, which are formed from regular, timely contributions, in full from the income received.
By the way, as an option, in your case, you can transfer your pension savings over the sufficiency threshold to companies that manage the investment portfolio (UIP), that is, try to take a risk and become an investor for yourself and, possibly, get more income. Moreover, this amount will return to your retirement account in the future and it will not be spent money, but multiplied, from which you will subsequently receive your pension payments.
To do this, you need to read the manager's investment declaration and understand how and in what he will invest your funds. Now there are four UIPS on the market and on the enpf website.kz you will find full information about them.