Reason for Stagnant Rise in Retirement Age Adjustment
Chatting with the Minister: Kazakhstan's Pension Age Review
The Ministry of Labor has spoken up about the potential adjustments to the pension age. Minister of Labor and Social Protection, Serik Shapkenov, shared his thoughts at a recent press conference, according to Total.kz.
"At the moment, reviewing the pension age isn't on the table. There are other influential factors at play," Shapkenov asserted.
Did you know that Kazakhstan has moved towards an accumulative pension system since 1998? This means that your pension benefits will depend on your participation in this system, potentially leading to a higher payout.
"Lowering the pension age might not give folks enough time to accrue their benefits, resulting in a small pension" the minister explained. "So, this topic isn't under consideration right now. However, there's an option called pension annuities. Men who have saved enough for their pensions by the age of 55 can secure these annuities."
Previously, there were discussions about revising the pension legislation in the Majilis, with deputies emphasizing the need for non-discriminatory pension laws across various citizen groups.
Deputy Alexander Milutin supports a shift to a solidarity pension system, which could function fairly in international practice when there are four working individuals for every pensioner. He pointed out that Kazakhstan currently has more than four times the number of working citizens compared to retirees.
Interestingly, in Kazakhstan, the retirement age stands at 63 for men and 58 for women. Pensions are sourced from the nation's pension fund, funded from the budget. The pension amount is determined by the number of years you've been officially employed and contributed to the pension fund[2].
As the debate continues, concerns about pension cuts' impact on working retirees and the potential for illegal work to maintain pension benefits have surfaced[1]. Budget planning and public policy are affected by the lack of accurate data on working retirees, as it influences the budget's longevity[1]. Kazakhstan may also draw inspiration from reforms in other countries, like Norway, where retirement ages are adjusted to reflect changes in life expectancy[5].
- The Ministry of Labor's focus on the pension age review doesn't extend to adjustments in the finance sector, particularly with regards to personal-finance and wealth-management policies.
- In the context of politics and policy-and-legislation, discussions about pension age revisions have taken place in Kazakhstan's Majilis, with proposals like Deputy Alexander Milutin's shift towards a solidarity pension system gaining attention.
- General-news outlets have reported on concerns related to pension cuts' impact on working retirees and the potential for illegal work to maintain pension benefits, highlighting the importance of accurate data collection in the realm of pension fund management.
