Joint retirement annuity for married couples and close relatives allows people to pool their savings and receive lifetime benefits without waiting for the official retirement. Couples can use this product if one spouse does not have enough pension savings to buy a retirement annuity, and the other has a surplus.
The retirement age in the Republic of Kazakhstan for men is at the age of 63, for women it is 60.5 in 2022 and will be increasing every year by six months until 2027, until it reaches 63 years.
A married couple, 55-year-old husband and wife, have pension savings of 10 million tenge and 8 million tenge, respectively. The minimum cost of retirement annuity with a monthly payment of 70% of the subsistence minimum, which is 26,173 tenge in 2022, for the husband is 7.4 million tenge, for the wife - 9.2 million tenge. In this case, the amount of the wife's savings is insufficient to conclude an individual retirement annuity agreement.
By pooling the savings and concluding a joint retirement annuity agreement with insurance premium of 18 million tenge, each spouse will be able to receive lifetime monthly payments in the amount of 28,430 tenge with annual indexation of subsequent payments.
When concluding a joint retirement annuity agreement the personal terms of the agreement are determined for each insured, including the amount and schedule of personal payments, which will be valid regardless of the death of one of the insured.
Thus, in the event of death of one of the spouses, the second will continue to receive their personal payments according to the schedule under the contract. If the annuity agreement provided for a guaranteed period of insurance payments, then, in the event of death of one or both spouses, the heirs will receive payments according to the schedule during the guaranteed period.
Benefits of retirement annuity:
If one of the spouses does not have enough pension savings to buy an annuity from insurance company, and the second spouse has an excess balance, then with marriage retirement annuity, you can provide both with life benefits;
If a person has a fairy large retirement savings, he can purchase a joint annuity with someone close to him, for example, with sister or brother. This annuity will provide lifetime benefits to a close relative who does not have large savings.
In the event of death of a husband or wife, or close relative, the second party to the contract will continue to receive payment from the insurer.
Who can be considered a close relative
According to the Marriage and Family Code of the Republic of Kazakhstan, parents, children, including adopted children, as well as brothers and sisters, including those with only one parent, grandfather, grandmother, and grandchildren are considered close relatives.
Photos are from open sources.