A multi-tier pension system has been formed in Kazakhstan; it includes basic and PAYG pensions, as well as retirement benefit from the UAPF (formed at the expense of an employee's pension savings).
As you know, the system of PAYG pensions is gradually being phased out, since when they are assigned, employment record worked out only before January 1, 1998 is considered, that is, before the introduction of the funded system.
In order to improve the pension system’s efficiency and provide citizens with adequate pensions, the following changes are planned within the framework of the draft Social Code:
First, it is planned to gradually increase the size of the minimum basic pension from 54 to 70%, the maximum - from 100 to 120% of the subsistence minimum in the period from 2023 to 2027.
The size of basic pensions will be increased to an average of 51% during this period. The annual increase in the average size of the basic pension will be about 13% and will affect all 2 million pensioners.
Second: as of January 1, 2023, it is planned to increase the maximum return used to calculate PAYG pensions from 46 to 55 monthly calculation indices for retiring citizens.
The proposed measures will allow increase the aggregate pension by an average of 27% (within 3 years - from 109 to 138 thousand tenge) by 2025 and build up the share of state payments in the total pension. Thus, the state assumes obligations to prevent the growth of poverty among the elderly population.
Photos are from open sources.