About a million Kazakhstanis used pension savings to buy housing and (or) treatment

About 1 million unique applicants used pension savings for the purchase of housing and (or) 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, treatment or transfer to management companies.

 From January 2021, as of May 1, 2023, the UAPF executed 1,361,040 applications from depositors (recipients) to use pension savings to improve housing conditions. The UAPF transferred more than 3.2 trillion tenge to special accounts of Kazakhstanis opened with authorized operators. At the same time, the average amount of one-time pension payments amounted to about 2.35 million tenge. The number of unique applicants was 692,936. Thus, some depositors (recipients) have repeatedly exercised the right to one-time pension payments for housing.

 

When analyzing the goals for which depositors (recipients) use their savings, the following conclusions can be drawn: about 36% of all applications are the acquisition of a home under civil law transactions (final settlement) and construction of an individual residential building (if a land plot is owned), about 21% of applications - for use by depositors (recipients) 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 - in order to use a housing mortgage loan: from down payment to refinancing and full repayment.

To date, the authorized operators accepting applications for the use of part of pension savings are Housing Construction Savings Bank Otbasy Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Freedom Finance Kazakhstan JSC.

 It should be noted that about 469.46 billion tenge was returned to individual pension accounts (IPS) of depositors (recipients) from authorized operators due to the fact that one-time pension payments by Kazakhstanis were not used on time, at the request of the applicant and for other reasons.

 

Also, the UAPF executed 414,326 applications for treatment in the amount of 334.08 billion tenge. The average withdrawal amount is about 0.8 million tenge. 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 are executed for dental services, 2.71% of applications are for ophthalmic services. Less than 1% of pension savings were used for other medical areas.

At the same time, 33.13 billion tenge returned to the IPS of depositors (recipients) in the UAPF, these funds were not used on time, 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 www.enpf.kz website in the "Indicators" section - "One-time pension payments for treatment."

As of May 1 of the current year, 8.9 billion tenge has been transferred by the investment portfolio manager (UIP) since 18.02.2021, 5,968 applications have been executed by the UAPF. The average transfer amount is about 1.5 million tenge. Detailed statistics on the transfer of pension savings to trust management are also available on the enpf.kz website in the "Indicators" section - "Transfer of pension savings to management companies."

 At the moment, UAPF has concluded trust management agreements for pension assets with five UIPs. You can get acquainted with information about them and study their investment declarations on the enpf.kz website in the section "Services" - "Register of investment portfolio managers." Note that out of 8.9 billion tenge - 44.29% or 3.9 billion tenge transferred to Susan Invest JSC, 28.04% or 2.5 billion tenge to Halyk Global Markets JSC, 16.14% or 1.4 billion tenge to BCC Invest JSC, 10.05% or 0.9 billion tenge to Centras Securities JSC, 1.49% or 132 million tenge in Halyk Finance JSC.

After the initial transfer of pension assets to the UIP trust management, the depositor 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 UIP to another. For the period from March 2022 to April 2023, 76 applicants changed their decision on the choice of UIP: UAPF executed 102 applications for transfer from one UIP to another for a total of 323 million tenge.

 101 people decided to use the right to return their savings to the management of the NBRK two years after the initial transfer of pension savings to the trust management of UIP. From March 15 to April 30, 2023, the UAPF executed 168 applications for the transfer of funds to the NBRK from UIP for a total of 625 million tenge.

 

Recall that after receiving pension assets from the UAPF, UIP invests them in the permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the UIP Investment Declaration.

 During the period when pension savings are under the control of the National Bank of the Republic of Kazakhstan, until the depositor reaches retirement age, there is a guarantee of the safety of pension savings, taking into account the inflation rate. When transferring pension savings to UIP management, the state guarantee is replaced by a guarantee of the management company to ensure the minimum level of profitability of pension assets, which is calculated based on the weighted average profitability of pension assets transferred to UIP management operating in the market.

 

UAPF was established on August 22, 2013 on the basis of NPF UAPF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. Since January 1, 2016, the functions of developing proposals for improving the efficiency of pension asset management have been transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts mandatory pension contributions, mandatory professional pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, provides the depositor (recipient) with information on the state of his pension savings (more details on the www.enpf.kz).