The accumulative pension system of Kazakhstan is designed in such a way that it is maximally protected from risks. For 23 years, despite a number of financial crises in the global economy, it has maintained stability. Today, Kazakhstan is the only country in the world where there is a state guarantee of the safety of citizens' pension savings from inflation. The Law On Pension Provision in the Republic of Kazakhstan guarantees beneficiaries the safety of compulsory pension contributions and compulsory occupational pension contributions to the UAPF in the amount of actually paid contributions, taking into account the inflation rate at the time of obtaining the right to pension benefits. If, by the time of retirement, savings are below inflation, then this difference is compensated to the beneficiary from the republican budget upon receipt of the first pension benefit payment from the UAPF.
If you have in mind the risks when making a decision on the use of pension savings, then we would like to draw your attention to the fact that the early withdrawal of pension savings will affect, first of all, the state of the individual pension saving account of the contributor who has withdrawn the money, and, as a result, his future pension benefits. Accounting for pension savings of citizens is carried out individually and the accumulation is formed from personal pension contributions, investment income and its personal withdrawals (or pension benefits), if any.
It must be understood that the funds that remain on the IPSA within the minimum sufficiency threshold allow the contributor to be provided with pension benefits in an amount not lower than the minimum pension. This is a small amount, which consists of benefits from the UAPF and the minimum basic pension, which is 54% of the subsistence level. In order to save on an individual pension saving account an amount sufficient to provide the beneficiary with at least a minimum benefit upon reaching retirement age, the thresholds for the sufficiency of pension savings are recalculated annually. At the same time, for a decent pension provision, it is necessary to have good savings, which are formed from regular, timely contributions, in full from the income received.
By the way, as an option, in your case, you can transfer your pension savings above the sufficiency threshold to investment portfolio management companies (IPM), that is, try to take a risk and become investor yourself and, possibly, get more income. Moreover, this amount will be returned to your pension account in the future and it will not be spent money, but multiplied, from which you will subsequently receive your pension benefits.
To do this, you need to familiarize yourself with the investment declaration of the manager and understand how and in what they will invest your funds. Now there are four IPMs on the market and you will find full information about them on the enpf.kz website.