Kazakhstan Introduces State Pension Guarantees from 2027
From 2027, Kazakhstan will guarantee the return of only the amounts actually contributed to the Unified Accumulative Pension Fund without accounting for inflation. The changes are linked to a transition to a system in which citizens themselves choose management companies and investment strategies.
Abdulrahman Sadikhli2 min read
From January 1, 2027, Kazakhstan will change the state guarantee on the preservation of pension savings. The state will continue to guarantee the return of pension contributions made to the Unified Accumulative Pension Fund (UAPF), but will stop compensating for their depreciation due to inflation.
Currently, the state guarantees the return of all contributions adjusted for inflation: if savings depreciate, the budget covers the difference. From early 2027, the guarantee will apply only to the actually contributed sum without accounting for inflation.
Reason for the Changes
The Ministry of Labour explained that the changes are linked to a reform of the system. Previously, Kazakhstanis could not influence the management of their savings. Now contributors can independently choose a management company and investment strategy, so the logic of guaranteeing returns has disappeared.
The ministry emphasizes that the pension asset management system remains under multi-level state control. The National Fund Management Council of the Republic of Kazakhstan, chaired by the president, defines the main directions of investment policy and hears reports on investment results.
Requirements for Management Companies
Private pension asset managers are obliged to cover negative performance differences from their own capital. Strict requirements are imposed on them regarding capital volume — no less than 1.9 billion tenge, or 440 thousand MCI — and work experience.
With regard to the National Bank, which manages the bulk of Kazakhstanis' pension savings, the Social Code enshrines an obligation to ensure asset preservation and strive for long-term real returns. Under the strategic plan through 2028, the National Bank's return on pension assets must be raised to a level 1% above inflation.
Source: kz.kursiv.media
