Lifeinsurance.kz asked financiers to give some advice for future retirees on how much to save up for a decent old age.
The Chairman of the Financial Institutions’ Association of Kazakhstan Elena Bakhmutova: “While the reform is under discussion, it is too early to say something. A 30% replacement is a very strong drop in revenue. It would be more logical to transform the increase in pension contributions by the employer; this will increase the amount of pension savings of employees with constant migration.
Another option is to motivate the population to individual savings. We have voluntary pension contributions as an option. The second direction is life insurance, which is now gaining weight. LIC products include subsequent acquisition of retirement annuities that can provide for life. Unfortunately, these products are not popular among the population now, but they will develop in the future, and the regulator is very interested in that.”
Oleg Khanin, The Board Chairman of Kommesk-Umir Insurance Company: “Make it a rule to save a certain amount or percentage of your income from each salary. It is possible and should be done by acquiring a deferred annuity policy. If you are 40-45 years old, it is time to think about supplement to your UAPF pension in the amount of payments that you will receive from the insurance company. You can accumulate a sufficient amount in the insurance company for 20-25 years and live comfortably on a well-deserved rest. Besides, your contributions in the insurance company are less than what you will receive, as the insurance company will be increasing your contributions with investment income.”
Freedom Finance Insurance Press Service: “There is a financial instrument that allows people to retire earlier. This tool is a retirement annuity. Thanks to it, Kazakhstanis can retire earlier: men - at the age of 55 and women – at 51. It is necessary to accumulate a certain amount in the UAPF, and then conclude a retirement annuity agreement with a life insurance company. In this case, the insurance company will pay you a pension, and payments will be regular throughout life. Men need to save 10,001,551 tenge, and women – 13,695,035 tenge.
Based on this, the main advice is to rely on you only. If you want to enjoy your retirement, you need to invest in yourself today. This will increase income, buy real estate, save money on a deposit or invest in securities.
Photos are from open sources.