For example, the threshold for 20-year-olds has increased from 3,140,000 to 3,260,000 tenge, for 30-year-olds - from 4,370,000 to 4,580,000 tenge, for 40-year-olds - from 5,790,000 to 6,100,000 tenge, for 50-year-olds - from 7,430,000 to 7,860,000 tenge. The new sufficiency thresholds can be viewed here.
Kazakhstani people can use part of their pension savings to improve their living conditions, or medical treatment, or to transfer funds to management companies. Pension savings within the amount available for withdrawal can be used an unlimited number of times.
Social indicators are used: the minimum wage (MW), the minimum pension (MP), the subsistence minimum (SM), which are indexed annually in accordance with the law "On the Republican Budget". It is determined for the year 2023 that the minimum wage will be 70,000 tenge, the minimum pension - 53,076 tenge, the minimum amount of the state basic pension payment - 24,341 tenge, the subsistence minimum - 40,567 tenge. Other socially significant indicators used when calculating the thresholds have also been increased.
It is important to emphasize that Defined Contribution Pension System of Kazakhstan is focused on ensuring an adequate standard of living after retirement. Only the regularity and size of contributions can positively affect the future pension. Therefore, it should be clearly understood: the withdrawal of funds from the pension fund leads to a decrease in the final size of the pension. Before withdrawing pension funds, it is worthwhile to critically evaluate the present and future priorities. For instance, as of November 1, 2022, the average monthly payment according to the UAPF schedule (upon the attainment the retirement age) was 29,877 tenge, and the maximum monthly payment amount was 707,326 tenge. This difference clearly shows the importance of maintaining and increasing pension savings.
Withdrawals from the pension fund have a negative impact on many factors. For example, substantial early cash outflows from the accumulative pension system reduce the investment opportunities of pension assets, affect investment returns and inflation during periods of instability in financial markets. Another point is that a significant part of pension assets is invested in the domestic economy contributing to its strengthening and development. Unbalanced early capital withdrawals can have the opposite effect and also trigger inflation.
Photos are from open sources.
