Thresholds for the minimum adequacy of pension savings for 2023

In accordance with the requirements of the law, one month before the start of the new year, the UAPF published in the media and on the website the minimum sufficiency thresholds (MIA) for 2023 as part of the early use of pension savings for alternative purposes. It should be noted that the PMI for 2023 ranged from 3 to about 10 million tenge, depending on age. Some changes in the values of the thresholds are explained by the fact that when calculating them, such social indicators as the minimum wage, the minimum pension, the subsistence minimum, which are indexed annually, are used. For 2023, it is envisaged that the minimum wage will be 70,000 tenge, the minimum pension is 53,076 tenge, the minimum state basic pension payment will be 24,341 tenge, and the living wage is 40,567 tenge. Other socially significant indicators that are taken into account when calculating the thresholds have also been increased. Recall that the law "On Pension Provision in the Republic of Kazakhstan" determines that the threshold for the minimum sufficiency of pension savings is the minimum amount of pension savings formed at the expense of mandatory types of pension contributions, necessary to ensure a monthly pension not lower than the minimum pension established by the law on the republican budget . The methodology for calculating the MIP was approved by the Decree of the Government of the Republic of Kazakhstan No. 1042 dated October 2, 2013 (with amendments and additions dated January 6, 2021). According to the approved Methodology, the MMI values are reviewed annually for each age and take into account the increase (indexation) of future pension payments and pension contributions. In other words, the minimum sufficiency threshold is the minimum that must remain in the account so that the depositor, upon reaching retirement age, receives, taking into account the minimum basic pension, total payments not less than the minimum pension.