Voluntary super contributions in Kazakhstan decrease

Business Materials 3 May 2019 10:32 (UTC +04:00)

Baku, Azerbaijan, May 3


In March 2019 the retirement savings in Kazakhstan totaled 9.6 trillion tenge, with an annual increase of 20.9 percent, Trend reports via finprom.kz.

The major part of the savings (97.8 percent) accounts for mandatory super contributions worth 9.4 trillion tenge.

"In contrast, total volume of voluntary super contributions in March 2019 amounted to 1.9 billion tenge with an annual decrease of 9.6 percent. That said, compared to the previous year the percentage of voluntary super contributions decreased reaching 0.02 percent," reads the message.

"In the same periods of the last five years, total volume of retirement savings increased by 19.6 percent on average every year, whereas the total sum of voluntary super contributions increased only by 4.3 percent," the report said.

Notwithstanding the positive dynamics of voluntary super contributions, they still account for the small part of the total volume of pension assets and continue to decrease.

"Thus, compared to today’s 0.02 percent, in 2014 voluntary super contributions accounted for 0.04 percent of the total volume of pension assets," said the statement.

At the same time, Kazakhstan’s Unified Accumulative Pension Fund is actively raising awareness of the cities’ residents to attract voluntary contributions. Since the beginning of the year it gave over 6,800 presentations. In the period since 2017 to 1Q2019 the presentations included some 1.6 million people which accounts for 17.8 percent of the workforce.

Furthermore, the country's Pension Fund is constantly developing new online services. On the official website of the Fund some 13 online services are available, including mobile applications, pension calculator, private office and so on.

"In 2017 the Fund spent 207 million tenge (annual increase of 34.2 percent) to maintain the developed infrastructure. Expenditures on information and telecommunication services also amounted to 309.5 million tenge in 2017 (annual +7.7 percent)," the report said.