Less than half of working Kazakhs regularly contribute to pension funds, a key challenge for the country's accumulative pension system. This finding comes from experts at the Analytical Center of the Association of Financiers of Kazakhstan (AFK) in a review of investment activities related to pension assets as of June 1, 2026, reports the website infohub.kz.
According to analysts, only 4.7 million people – less than half of Kazakhstan's workforce – make regular pension contributions (9–12 months a year). This means that for a large portion of the population, the main issue is not the ability to use pension savings early, but rather their insufficient amount at retirement age.
Meanwhile, pension savings continue to grow. As of June 1, they reached 27.7 trillion tenge, an increase of 1.4 trillion tenge, or 5.4%, since the start of the year. The growth was driven by higher pension contributions amid rising employment and wages, as well as investment income, which grew by 4.9%. However, the strengthening of the tenge partially reduced the financial result due to negative currency revaluation.
Investment income remains a key source of pension savings, accounting for over 40% of the total. Government securities continue to form the backbone of the pension portfolio, comprising 61% of assets, while another 22% are managed externally. Over 96% of financial instruments have an investment-grade credit rating, which reduces risks but limits potential long-term returns.
Experts also note that the private pension asset management sector is developing slowly. Private management companies oversee 110 billion tenge, but this accounts for only 0.4% of all pension assets. The remaining 99.6% remain under the management of the National Bank.
After several years of active withdrawals for housing and medical expenses, the pension system is gradually returning to its primary function of building long-term savings. In January–May 2026, payouts for housing and treatment totaled 308 billion tenge, while incoming pension contributions reached nearly 1.5 trillion tenge.
According to AFK analysts, further development of the pension system should focus on expanding regular pension contribution coverage, increasing formal employment, boosting labor productivity and incomes, and ensuring sustainable real returns on pension assets. They also emphasize the importance of predictable pension policy and maintaining public trust in the accumulative pension system.