Profitability of pension assets as a basis for pension provision for the elderly

Abstract

In June 2013, the Law "On pension provision of the Republic of Kazakhstan" was adopted. In addition to a number of reforms, this Law provided for the creation of a Unified Accumulative Pension Fund based on economic and social needs.

In accordance with Article 5 of the Law, upon reaching the retirement age in Kazakhstan, a state guarantee system operates for mandatory types of pension contributions in the amount of the amount actually accumulated in the personal pension account, taking into account the inflation rate [1].

In other words, when a citizen retires, the funds accumulated in a personal pension account are calculated in relation to the inflation rate accumulated over the entire working period in the accumulative pension system.