Non-governmental pension funds build up capital

In 2017 Q2, non-governmental pension funds’ own assets (capital and assets to support statutory activities) rose 16.1% to 416.2 billion, on the back of a 31% growth of capital to 214.2 billion rubles, according to the reporting of non-governmental pension funds (NPFs).

NPFs have been building up capital for the second consecutive year, thanks to factors including a reduction in the actuarial reserve and mandatory pension insurance reserves, in the run-up to the regulatory stress tests slated to take place starting from February 2018.

2017 Q2 saw NPFs’ assets increase 2% to total 3.7 trillion rubles as of late June. Pension reserves increased 1% to reach 1 trillion rubles while the amount of pension savings remained mainly unchanged at slightly above 2.3 trillion rubles.

As of the end of 2017 Q2, as many as 34.4 million people were entrusting their retirement savings to private pension funds and 5.6 million people were participants in the non-governmental pension system.