Pension Savings Will No Longer Receive Inflation Compensation

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

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