A new methodology for calculating minimum adequacy thresholds for pension savings has come into force
In compliance with the requirements of Government Resolution No. 422 of the Republic of Kazakhstan dated May 21, 2026, the UAPF published minimum adequacy thresholds (MAT) for pension savings calculated for 2026, taking into account changes to the Calculation Methodology, in the media and on its own website.
According to the new Methodology, MAT amounts are determined based on target indicators for future pension benefits and are calculated for each age of the contributor using a standard formula for calculating the present value of monthly benefits.
The formula takes into account long-term demographic (national demographic tables) and financial (interest rates and indexation of benefits) factors to achieve stability and predictability in the amount of future payments for citizens.
The present value formula for benefits is based on international practice for calculating the savings required for targeted benefits. The calculation results are less susceptible to change when macroeconomic forecasts are revised. However, the calculations still use socioeconomic indicators such as the minimum old-age pension and minimum wage, which are determined annually by the law on the republican budget. However, the formula does not take into account future pension contributions from the moment of withdrawal until reaching retirement age. This minimizes the risk that, after using part of the savings, the contributor will receive a low funded pension in the future.
However, the right to use part of the pension savings for alternative purposes (housing and medical treatment) is retained. Pensioners whose pension is at least 40% of their lost income can use their savings; they can withdraw up to 50% of their savings for housing and medical treatment. Citizens who have entered into a pension annuity agreement, as well as pensioners who receive a state pension based on length of service, can fully use the remaining funds in their pension account.
The ability to use savings above the minimum adequacy threshold remains, but approaches to determining the amount of funds available for withdrawal are being refined, taking into account the need to ensure citizens have adequate and stable pension benefits in the future.
MATs have increased by 79% or more depending on the contributor's age: the closer to retirement, the higher the requirements for the future pension benefit, and the larger the amount required in the pension account. Therefore, MATs for people approaching retirement age more than double. This means that pension savings will remain in their accounts, will be further invested, and pension benefits will increase significantly. Under the previous Methodology, benefits after withdrawal would have amounted to approximately 15% of the median salary; under the new Methodology, they will be approximately 40% of the median salary.
Thus, the new methodology for determining MAT is transparent and more predictable for contributors and is aimed at ensuring a stable pension income for citizens at retirement age in accordance with international standards.
UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz)