Pension Savings Will No Longer Receive Inflation Compensation
Illustration: envato
Starting in 2027, Kazakhstan will stop making one-time payments to cover inflation losses on pension savings when people retire, Orda.kz reports, citing the Ministry of Labor and Social Protection.
Under the current system, if investment returns fail to keep pace with inflation, the state pays the difference from the budget.
The guarantee that mandatory pension contributions will retain their nominal value will remain. However, the state will no longer guarantee that those savings maintain their purchasing power.
Starting in 2027, the budget program providing a one-time payment to cover the inflation gap for people retiring will be discontinued. Automatically covering inflation risks from the budget no longer makes economic sense because citizens can choose who manages their pension savings,the ministry said.
From September 2026, Kazakhstanis will be allowed to transfer up to 100% of their pension savings to private management companies. The current limit is 50%.
Those who do not choose a private company can leave their savings under the management of the National Bank, which is expected to generate long-term returns above inflation.
Original author: Alina Elgeldina
Read also:
Latest news
- 19 Forest Fires Reported Across Kazakhstan’s Protected Areas
- Patient Fined for Threatening Kostanay Medical Worker
- Six Die from Gas Poisoning During Sewer Repairs in Pavlodar Region
- Kazakhstan Considers FIA Grade 1 Racetrack in Atyrau
- Drone Attacks Continue at CPC Terminal: Another Oil Tanker Hit
- Pension Savings Will No Longer Receive Inflation Compensation
- Kazakhstan to Expand Three Refineries and Build a New One
- Kazakhstan Resident Wins Court Battle Over Jennifer Lopez Ticket
- Kazakhstan Extinguishes Four Forest Fires as Heat Continues
- Kazakhstan Demands Action After Drone Attacks on Tankers Carrying Its Oil
- Tankers Carrying Kazakh Oil Attacked Again, Loading Suspended
- Extreme Heat Damages Roads in Three Kazakhstan Regions
- Three New Forest Fires Reported Across Kazakhstan
- Drone Attack on Tanker Did Not Affect Kazakh Oil Shipments, Energy Ministry Says
- Extreme Heat Damages Major Highway in Southern Kazakhstan
- Four Lanes Planned Each Way at Kazakhstan–Russia Border Crossing
- Kanye West Concert in Almaty at Risk After FC Kairat Opposes It
- Aral Sea Restoration Continues as More Water Arrives
- Pink Lake Near Astana to Receive Protected Status
- Kazakhstan Finishes Seven-Volume Academic History Manuscript
