I am 42 years old and I would like to withdraw some of my pension savings for medical treatment. How will the thresholds of sufficiency change for me from the new year and what are they connected with?
According to the law On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Restoration of Economic Growth, citizens have the right to use part of their pension savings to improve housing conditions, pay for medical treatment that is not included in the guaranteed volume of free medical care and compulsory social health insurance.
Pension savings can be used by citizens an unlimited number of times within the amount of pension savings in the UAPF available for withdrawal for housing, medical treatment or transfer to management companies.
The minimum sufficiency thresholds are reviewed annually, since they are calculated using such social indicators as the minimum wage, minimum pension, subsistence minimum, which are indexed annually.
For 2023, it is envisaged that the minimum wage will be KZT70,000, the minimum pension is KZT53,076, the minimum size of the state basic pension benefit will be KZT24,341, and the minimum subsistence level- KZT40,567. Other socially significant indicators that are taken into account when calculating the thresholds have also been increased. Accordingly, the thresholds have also been changed. Information about what they will be like from January 1, 2023 is posted in the media, as well as on the enpf.kz website.
According to these indicators, the minimum sufficiency threshold for you in 2023 will be KZT6,440,000. Funds in excess of this amount can be used for treatment.
Recall that the law On Pension Provision in the Republic of Kazakhstandetermines that "the threshold of minimum sufficiency of pension savings is the minimum amount of pension savings formed at the expense of compulsory types of pension contributions, necessary to ensure a monthly pension not lower than the minimum pension established by the law on republican budget.
In other words, the minimum sufficiency threshold is the minimum amount that must remain in the account so that the contributor, upon retirement, receives benefits not less than the minimum pension (in this case, the base benefit is also taken into account in the total amount of pension benefits).