Corruption scandals destabilized the UAPF reform

DEMOSCOPE Bureau of express monitoring of public opinion

conducted the survey of Kazakhstani citizens

on Obligatory Pension Contributions to UAPF”.

The survey participants were 1874 people from Astana, Almaty

and 15 regional centers of Kazakhstan.

The questions were answered by 71% of women

and 29% of men over 18 years old.

For this selection maximum size of statistical error

with probability of 95% does not exceed 1,2%.

The poll method is a telephone interview.

The survey was conducted from 6 August to 10 August, 2018.

 

In July, 2018 the amendments to Article 25 of the law “Rate and Payment Procedure of Compulsory Pension Contributions” came into force. Now self-employed citizens shall deduct 10% of income in UAPF.

The Demoscope bureau conducted a poll on this innovation.

A third of respondents (32%) are positive about obligatory contributions to UAPF. The citizens expect that the increase in the Fund income will lead to growth of retirement benefits in the future. However, 27% of citizens, on the contrary, predict negative consequences of this reform, considering that the population have already low income.

18% of survey participants adhere to passive and neutral attitude: “If it is necessary to make pension contributions, I will do so”. It is typical that a quarter of respondents have not heard about new rules of contributions to the pension fund at all.

Within the poll Kazakhstani citizens also expressed the opinion on the future of the pension system. 44% do not perceive this reform seriously, considering that the current actions of the authorities will change nothing in general. A third of respondents critically reacted on this reform, predicting increase in corruption in UAPF. It is interesting that more than a third (36%) of Astana and Almaty residents hold this view.

It is obvious that corruption scandals connected with UAPF downgraded the rating of trust among the population. This factor, perhaps, will negatively affect implementation of the present legislative initiative. 20% of respondents are more optimistic. They predict that increase in the pension fund will lead to growth of pensions in the future. 7% expect increase in the shadow sector of economy.

The poll showed that positive expectations from the reform by areas are stronger in Astana (24%). Whereas the vast majority of North Kazakhstan inhabitants (61%) consider that nothing will change.

Within the research only 3% of Kazakhstani citizens expressed the intention to make compulsory contributions in the Pension Fund, according to the new rules. This indicator is higher (5%) in East Kazakhstan and Pavlodar region.

40% of citizens have already started deducting a part of income to UAPF.

18% did not fully understand new rules and therefore, do not plan to pay a compulsory contribution.

The survey results showed that the most part of respondents (40%) are not going to transfer their hard-earned money to the UAPF treasury.

More than a half of respondents (52%) do not know whether they will be able to expect the decent pension. A third of respondents (33%) do not expect considerable improvements in the pension system of the country and do not reckon on affluent old age: More than a half of respondents (52%) do not know whether they will be able to expect decent pension. A third of respondents (33%) do not expect considerable improvements in the pension system of the country and do not expect a secure old age: “In the light of corruption scandals we perhaps will not see the current contributions”.

It is remarkable that by regions Mangystau (43%) and Kostanay (39%) inhabitants are mostly concerned by corruption level.

The results of the conducted survey showed that most of citizens (52%) are not confident in sustainable development of UAPF and in the pension future. In total, 36% of citizens consider that innovations will lead to growth of corruption in UAPF and growth of the shadow sector of economy. It is possible for this reason 39% of Kazakhstan citizens do not plan to deduct a part of income in UAPF.

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