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Kazakhstan's Ministry of Labor and Social Protection has informed citizens about updated minimum sufficiency thresholds for pension savings. The ministry also reminded individuals about the conditions under which they can access up to 100% of their savings for housing or medical expenses.

Understanding the New Pension Rules

The changes in sufficiency thresholds are due to an updated calculation methodology. This new approach considers not only a person's age but also their pre-retirement period, projected future pension payments, investment returns, and other long-term financial parameters.

The ministry emphasized that updating these thresholds is primarily aimed at protecting the long-term interests of contributors. Pension savings are not intended for immediate expenses but are designed to ensure stable payments after retirement.

Who Can Access Their Full Pension Savings?

The ministry maintains that pension funds should primarily serve their intended purpose: funding retirement. Early withdrawal of savings can significantly reduce future pension payments.

However, the right to use a portion of pension savings for alternative purposes, such as housing and medical treatment, remains. Individuals can access up to 50% of their savings for these needs if their pension covers at least 40% of their lost income. Full access to remaining funds is available only to pensioners who have reached retirement age and are receiving their state pension based on their years of service.

The sufficiency thresholds had not been reviewed for the past three years, making the update necessary to maintain the stability of the pension system. This ensures citizens will have more secure and stable incomes in their retirement years.

It's important to note that the Unified Accumulative Pension Fund (UAPF) has published the minimum sufficiency thresholds for pension savings for 2026. This marks the second increase within the year. For example, a 20-year-old Kazakhstani would need to accumulate at least 6,670,000 tenge to withdraw excess funds, while a 30-year-old would need 9,750,000 tenge, and a 40-year-old would require 13,370,000 tenge.

This information was reported by the Infohub.kz news agency.