1) Hello! I installed the application from the UAPF and now I check my statement every two to three days. I noticed that the amount changes all the time, but for some reason, not only a plus, but also a minus. Explain why this happens?
In the extract you see the amount of pension savings, which includes pension contributions and investment income from investing the proceeds.
Recall that the pension contributions received to the individual pension account, which are accounted for by the UAPF, are not just stored, but invested by the trustee of pension assets - the National Bank of the Republic of Kazakhstan (NBK) in various financial instruments. The National Bank invests pension assets in accordance with the list of financial instruments permitted to be acquired at the expense of pension assets approved by the Government of the Republic of Kazakhstan and investment limits in accordance with the UAPF Investment Declaration.
You see daily changes in the amount of savings because it is recalculated and revalued daily in accordance with the results of investing pension assets.
It should be noted that investment income is variable and can be both positive and negative in the short term.
It is important to remember that in order to minimize risks, UAPF depositors' funds are diversified by types, areas of investment, including currencies. For example, at present, about 2/3 of investments are denominated in tenge and about 1/3 in foreign currency, most of the latter in US dollars.
In addition, the investment income includes income in the form of interest on securities (deposits and other operations), income in the form of a market revaluation of financial instruments, income in the form of a currency revaluation, income on assets held externally, etc.
For example, we can consider the accrual of investment income to the accounts of depositors and recipients in 2020. In January, net investment income amounted to +28.15 billion tenge, in February +111.7 billion tenge, in March +521.8 billion tenge, in April - 125.6 billion tenge, for the period from May to June 2, 2020 - 102.4 billion tenge.
As you can see, in March there was a large increase in investment income (+521.8 billion tenge), in April, May - early June, a decrease in investment income. But despite this, its total amount for the period January to June 2, 2020 remains positive +433.6 billion tenge.
If we look at why March this year became so profitable, let's go back a few months ago and find out that it was in March that the US dollar appreciated against tenge from 381 to 448 tenge per 1 US dollar. And then we saw the result. The positive foreign exchange revaluation of pension assets placed in foreign currency instruments affected a significant increase in net investment income on pension assets.
In April, on the contrary, the tenge appreciated against the US dollar from 448 tenge to 424 tenge. The trend of strengthening the national currency continued in May 2020. The tenge rose to 411 per US dollar. The first days of June are also characterized by an increase in the national currency to 402 tenge per 1 US dollar. Accordingly, there was a negative revaluation of pension assets placed in foreign currency instruments, which affected the decrease in investment income.
Therefore, we draw your attention to the fact that pension savings are long-term investments and it is advisable to analyze the amount of investment income for a period of at least one year.
2) Recently I found out that I can transfer my pension savings from UAPF to an insurance organization under a pension annuity agreement. Can I find out how much I should have and what I will receive payments in case of money transfer, or if I stay at the UAPF?
Each contributor to the Unified Accumulative Pension Fund can independently calculate their future pension payments both from the UAPF and the insurance organization, using one of the most popular services on the fund's website - the Forecast Pension Calculator. In particular, it covers all components of a pension within the multi-level pension system of Kazakhstan: state basic pension and old-age pension (or joint), as well as a pension formed from compulsory pension contributions (OPV), compulsory professional pension contributions (OPV) and voluntary pension contributions (DPA).
At the same time, if the predicted amount of pension savings (generated by OPV, OPPV and DPV) is sufficient for reaching retirement age, a pop-up window will appear informing the user about the possibility of concluding a pension annuity agreement with an insurance organization in the future and receiving lifetime pension payments. The calculation immediately allows you to find out the forecast size of the annuity payment from the insurance company, thereby you can independently compare it with payments according to the schedule from the UAPF.