Kazakhstan to Overhaul Pension System: Shorter Wait, Bigger Payouts
Kazakhstan's Prime Minister, Askar Mamin, has revealed plans to overhaul the country's pension system. Key changes include reducing the minimum participation period for the guaranteed pension and increasing its size.
Mamin announced that the minimum participation period will decrease from 10 years to 5 years. This means citizens will be eligible for the guaranteed pension after contributing for half the time previously required.
The minimum size of the guaranteed pension will also increase, from 54% to 70% of the subsistence minimum. This significant boost aims to provide better financial support to pensioners.
Mamin commented on the indexing of the solidarity pension, stating that basing it on past real consumer price and wage growth indices is not reasonable. Instead, the annual indexing will exceed inflation by 2%, ensuring a steady increase in pension values.
Employers will also play a larger role in the pension system. Starting in 2023, they will be required to make mandatory pension contributions. This change is part of the broader modernization plans for the pension system, which consider the country's economic situation, social and demographic factors, and the Head of State's instructions.
The planned changes to Kazakhstan's pension system aim to provide better support to pensioners and ensure the system's long-term sustainability. The reduction in the participation period and increase in the guaranteed pension size will benefit more citizens, while the new indexing method and employer contributions will help stabilize the system.
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