The share of accumulated net investment income in the total volume of pension savings of Kazakhstanis is growing
The volume of pension savings, as well as the share of investment income in it, is growing year after year. The net investment income accumulated since 2014 (after the consolidation of pension assets in the UAPF) as of March 1, 2025 amounted to KZT11.46 trillion (for comparison, as of March 1, 2024, it amounted to KZT8.83 trillion). Taking into account the payments made, the share of accumulated net investment income in the total volume of pension savings of Kazakhstanis as of March 1, 2025 is 40.3%, which demonstrates the significant role of investment activities in the structure of citizens' savings (as of March 1, 2024, this figure was 37.4%).
It should be noted that pension savings are long-term investments. Therefore, it is advisable to analyze the amount of investment income for a period of at least one year. In certain periods, a decrease in profitability may be observed due to the volatility of foreign exchange rates, changes in the market value of financial instruments, as well as the impact of inflation.
In the medium and long term, a positive real (exceeding accumulated inflation) return on pension savings is ensured. Thus, the accumulated investment return from the foundation of the funded pension system in 1998 until March 1, 2025, with a cumulative total, amounted to 962.28% with inflation for the entire period of 851.90%.
Diversification of the investment portfolio, when the income from some instruments covers temporary losses from others, ensures the safety and stable return on pension savings in the long term. Investment income in dynamics over the past 3 years shows stable growth, the return on pension assets exceeds the inflation rate. As of March 1, 2025, the return on pension assets managed by the National Bank of the Republic of Kazakhstan (NBRK) and formed through compulsory, compulsory occupational and voluntary pension contributions, over the past 12 months, distributed to the accounts of contributors (beneficiaries), amounted to 13.74% with inflation at 9.4%.
We also remind you that Kazakhstan has a unique guarantee of the safety of compulsory pension contributions taking into account the inflation rate. In cases of a decrease in return in a separate period, affecting the accumulated return of the contributor upon the occurrence of the right to pension benefits, compensation for the difference is guaranteed by the state.
The entire system of investment management and accounting of pension assets is transparent: each contributor has the opportunity to see their investment income in their personal account on the enpf.kz website or in the mobile application.
Information on the investment management of UAPF pension assets and on the financial instruments in which UAPF pension assets are placed is published on the official UAPF website (www.enpf.kz) in the “Indicators/Investment activities” section.