Choose your method of receiving pension payments
The pension system in Kazakhstan provides investors (recipients) with more and more opportunities to participate in planning pension capital and their financial security after retirement. A competitive environment is being formed in the field of asset management with the possibility of transferring them to investment portfolio managers (IPMs) and choosing different investment strategies. If pension savings are sufficient, you can use them to improve your living conditions or treatment before reaching retirement age. The most far-sighted contributors (recipients) add voluntary contributions in addition to mandatory types of contributions when forming their future pension.
Today, UAPF contributors (recipients) can choose different sources of payments thanks to an alternative type of pension provision - a pension annuity offered by insurance organizations. A pension annuity is a financial insurance instrument that allows UAPF investors to receive a “pension” ahead of schedule, but subject to sufficient pension savings. Along with pension payments from the Unified Pension Pension Fund, it is intended to pay for needs after retirement, when other sources of income may be absent.
The adequacy of pension savings is determined by the terms of the pension annuity agreement with the insurance organization, which we recommend that you carefully read when deciding to transfer pension savings. When concluding a pension annuity agreement with an insurance organization, their pension savings are transferred from the UAPF to the selected company in the manner prescribed by law.
In order to increase the availability of pension annuities, changes were made to the legislation in February 2023, according to which the minimum rate of indexation of payments increased from 5% to 7%, and the maximum rate of return from 6% to 9%. Also, as part of the new changes, the average life expectancy of persons with disabilities and those working in harmful and dangerous working conditions was taken into account.
In addition, it is possible to take advantage of the so-called “deferred” pension annuity from the age of 45, but payments under it can be received from the age of 55. At the same time, persons who have worked in hazardous working conditions for at least 5 years can purchase such an annuity from the age of 40, but with payments from the age of 50.