Kazakhstan commences application process for pre-retirement
In a significant development, the government of Kazakhstan has announced that citizens can now apply for early withdrawal of their pension savings for specific purposes. This move is aimed at providing financial support for housing improvements, medical treatment, and private investment management.
The law allows both employees and pensioners to use a portion of their pension savings, depending on their individual circumstances. For employees, the amount they can withdraw is limited to the excess of their pension savings over the "sufficiency threshold" at their corresponding age. Pensioners, including those from law enforcement agencies, can use up to 50% of the remaining amount in the EPF for these purposes, provided that their total pension ensures income replacement at a level corresponding to international standards (not less than 40%).
The pension savings eligible for use include mandatory pension contributions, mandatory professional pension contributions, and investment income derived from them. This means that individuals who have signed pension annuity contracts with insurance companies can also benefit from this policy.
The application process for early withdrawal of pension savings can be initiated on a specific website, which went live at 09:00 NUR/SLT time. This user-friendly platform is designed to make the process as straightforward as possible for citizens.
It's important to note that the right to use pension savings for specific purposes is available to individuals who have accumulated savings through regular and full pension contributions. This ensures that the policy is fair and benefits those who have contributed consistently to their pension funds.
The term "sufficiency threshold" is used in the context of pension savings in Kazakhstan. This threshold represents the minimum amount of pension savings required to ensure a basic standard of living for retirees.
In conclusion, this new policy offers a valuable opportunity for citizens to access their pension savings for specific purposes, providing financial support during times of need. By offering this flexibility, the government aims to empower citizens to make decisions that best suit their individual circumstances.
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