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How can young Kazakhstanis secure a decent pension

by February 7, 2018 Legal

Deputy Minister of Labor and Social Protection of Population Svetlana Zhakupova in a press conference told about what today’s young Kazakhstanis need to know in order to secure a decent pension.

What are the conditions for receiving 100%? This is something extremely important for the youth to understand. If your work experience is accumulatively more than 33 years. If you entered the labor market at 21 years old, then you must participate in the funded pension system for at least 33 years, after which you can accordingly expect receiving 100% of the subsistence minimum – as basic level. And if you participate in the pension system and transfer pension contributions in full on time, then accordingly you will also have pension payments from the SNPF, which is the most important advantage. The one who will work more will receive more, � Svetlana Zhakupova assured.

She also noted that for the time being there is a process of curtailing solidarity pension payments.

Considering that our solidarity system is curtailed, it means that fewer persons of retirement age have the necessary work experience as of January 1, 1998. Therefore, we announce that since 2020 we are introducing a new level, this is a conditional-funded system, when the employer will transfer an additional 5% for all their employees. Today 10% is calculated from wages. This is solidarity, when the state, the employer and the employee themself will be responsible for their pensions, �Svetlana Zhakupova added.

Note that this year the basic pension level will change, it will be 100% of the subsistence minimum starting July 1, 2018.

Source: Government of the Republic of Kazakhstan