Kazakhstan's pension savings remain under full state protection despite changes to the state guarantee mechanism from 2027. This was reported by Qazaqyia.kz citing Kursiv Media.
The Ministry of Labor and Social Protection, the National Bank and the Unified Accumulative Pension Fund (ENPF) issued a joint clarification. According to Article 217 of the Social Code, the state will continue to guarantee the safety of mandatory pension contributions and mandatory professional pension contributions in the amount of actually deposited funds.
However, from 2027, the mechanism of one-time compensation for the difference between the return on pension savings and the inflation rate upon retirement will cease. The Ministry explained that the changes are related to the reform of the pension asset management system.
Starting September 2026, Kazakhstanis will be able to transfer up to 100% of their mandatory pension savings to private investment portfolio managers. Currently, this limit is 50%. The Ministry believes that when contributors independently choose their investment strategy and management company, compensating inflation risks from the state budget loses economic feasibility.
Private management companies will be required to compensate losses if the return falls below the level set by the regulator, using their own capital. For those who do not plan to transfer savings to private managers, the National Bank will remain the main manager. According to strategic plans, the regulator must ensure long-term return on pension assets at least 1% above inflation.
The Ministry also reported that various options for further modernization of the pension system are currently being considered, including the introduction of an insurance component and new models for forming pensions. The ultimate goal of the reform is to create a system that provides Kazakhstanis with lifelong pension payments with a replacement rate of lost income of at least 40% in accordance with International Labor Organization standards.