Pension accruals in non-governmental pension funds grow over 10%

Pension savings in non-governmental pension funds (NGPFs) totalled 2.4 trillion rubles by late March, having increased by over 10% in the first quarter. NGPF pension savings including pension reserves grew 6.4%, to a total of 3.5 trillion rubles, according to financial statements of NGPFs available on the Bank of Russia website.

The growth in NGPF pension savings can be attributed to the receipt of 234.4 billion rubles from the Pension Fund of Russia in the first quarter. As a result of changeovers in the course of 2016, as many as 4.6 million Russian citizens joined non-governmental pension funds.  The total number of insured individuals contributing savings out of their income to NGPFs increased to 34.4 million.

As of quarter-end, the weighted return on pension investments stood at 5% p.a., return on pension reserves was 2.5%, with inflation at 3.7% p.a.