UAPF JSC (hereinafter referred to as UAPF, Fund) published the Annual Actuarial Report for 2023 (hereinafter referred to as the Report), which presents the main results of comprehensive actuarial calculations in the main areas of further improvement of the pension system of Kazakhstan.
The most important function of the state is to create an effective pension system that meets international standards and ensures adequate payments at retirement age. The effectiveness of the pension system is assessed by various indicators, which are analyzed and forecasted in this Report.
Section 1 of the Report describes demographic trends in Kazakhstan and their impact on the pension system. At the same time, the demographic situation as of 01.01.2023 is covered and forecast demographic trends up to 2050 are presented, taking into account the stochastic and deterministic approaches.
Section 2 presents forecasts and assessment of the adequacy of future pension payments in Kazakhstan in the context of an objective reduction in the solidarity component and the development of the funded component. In particular, a forecast of individual replacement rates for the components of the country's multi-level pension system was made taking into account standard economic assumptions used within the framework of the methodology of the Organization for Economic Cooperation and Development, as well as specific assumptions that take into account the economic conditions in the country.
Section 3 of the Report presents the modeling and forecasting of pension flows, in particular, it describes the comprehensive actuarial model KazPRESTO and its forecast results, modeling of demographics, the labor market, pension payments at the expense of 10% of mandatory pension contributions.
The annual actuarial report is one of the most important documents of the Fund and discloses up-to-date information to a wide range of stakeholders. The document has been prepared taking into account international standards and best world practices for disclosure of information.