UAPF depositors that have issued a retirement annuity can retire 8 years earlier. It is possible, however, if you have sufficient savings. Starting from 2023, men aged 55 years and women aged 53 can purchase an annuity. Kazakhstanis who have worked in hazardous industries for at least 5 years can also enter into a retirement annuity agreement. The age for both men and women is 50 years.
As mentioned above, all of the listed methods are available only to a limited number of Kazakhstanis. Everyone else has to wait until retirement age. However, there are options that allow you to retire even at 40 or 50.
Real goal
According to the expert in personal and corporate finance Venera Zhanalina, retiring at the age of 45–50 is an ambitious goal, but quite realistic. She notes that there is even such a movement - FIRE (Financial Independence, Retire Early).
“FIRE is a community of people who strive for financial independence and wish to retire much earlier than the traditional age. The main idea is to save aggressively and invest the majority of your income in order to accumulate enough capital to live on passive income,” says Venera Zhanalina.
Its supporters try to save from 50% to 70% of their income strictly controlling expenses and avoiding unnecessary costs. And the money accumulated this way is invested in securities, real estate and other income-generating assets.
“Minimization of costs is an important element of the movement, as supporters strive to lead a low-key lifestyle and give up on luxury. Many participants create sources of passive income, such as rental property or stock dividends, to ensure financial freedom,” added Venera Zhanalina.
In general, those people who intend to retire at the age of 45-50, should firstly draw up a detailed financial plan, the expert recommends. It should include current income, expenses, and expected living costs after retirement. The key steps towards achieving the goal are strict control of expenses and increased savings.
However, the specialist emphasizes that the feasibility of achieving early retirement depends on many factors, such as current income and expense level, investment decisions and the economic situation. By following all these steps, you can significantly increase your chances of achieving this goal.
Pension by means of insurance savings
Before you start saving for an early retirement, a personal financial expert Akzhunis Brasilova advises, first of all, to define a goal - how much you would like to be receiving monthly and when you plan to retire.
“You can choose several ways to accumulate and create pension capital. The first and foremost is obviously a business, the creation of assets. But all this does not always involve saving money. A situation often happens when expenses equal income, and in the end you break even. This is also risky and does not provide an opportunity to create assets and capital,” explains Akzhunis Brasilova.
The second way to save for retirement is through savings and accumulations. However, a deposit is not the best tool for this purpose. “When we create some money on a deposit, we often withdraw a certain amount and promise to put the money back later,” says Akzhunis Brasilova.
The most optimal way to create the opportunity for an earlier retirement is endowment life insurance. “Supposedly, a 30-year-old young man can get a contract and retire at 50, having accumulated the required amount before this age, which, as a rule, is affordable for every budget. By the age of 50, you can enter into an agreement with an insurance company for annuity payments, and it will be paying you the money you have accumulated, including interest and return, and the rest of the money will always work at a certain percentage,” the expert believes.
Thus, you can create a pension for yourself and go on vacation whenever you wish. According to Akzhunis Brasilova, this is a right tool that every family should have. Moreover, this approach is quite developed in the world, and people often start saving for endowment from their first salary, but this culture has not yet reached Kazakhstan. However, this is an almost guaranteed way to achieve a good pension.
The sums that need to be allocated for this type of savings can range from 10% to 30% of the monthly budget. You can make the savings either monthly or quarterly, or semiannually. With a responsible approach and discipline, a person will need 10-15 years on average to create good conditions for themselves during the retirement period. At first glance, this may seem like a long time, but this time will pass one way or another, and in order not to waste it, you can accumulate quite a decent amount during this period.
Source: https://www.zakon.kz/pravo/6438807-kakie-novosti-soderzhit-novyy-zakon-rk-o-massmedia.html
Photos are from open sources.
