Half of Kazakhstan's workers lack regular pension contributions
This digest was compiled by AI from multiple sources — links to the originals are below.
Only 4.7 million of Kazakhstan's workforce make regular pension contributions, less than half of the employed population, according to a June 2026 review by the Analytical Center of the Association of Financiers of Kazakhstan (AFK). Total pension savings reached 27.7 trillion tenge, up 5.4% since January, driven by higher employment, wages, and investment income. However, the low coverage rate remains a structural challenge for the funded pension system.
Coverage Gap
Regular contributors — those making payments 9–12 months per year — total 4.7 million, or less than half of Kazakhstan's workforce, according to the AFK review. This means many workers face insufficient savings at retirement, undermining the system's core purpose. The AFK warns that expanding coverage is the primary challenge for the funded pension model.
Savings Growth and Composition
Pension savings rose to 27.7 trillion tenge by June 1, 2026, a 5.4% increase since January, driven by higher employment, wage growth, and investment income. Investment returns now account for over 40% of total savings. The portfolio remains conservative: 61% in government securities, 22% under external management. Over 96% of instruments hold investment-grade ratings, limiting risk but also potential long-term returns.
Private Management Stalled
Private asset management companies oversee only 110 billion tenge, or 0.4% of total pension assets, according to the AFK. The remaining 99.6% is managed by the National Bank. While private managers posted positive returns in 2026, the National Bank earned just 3.03% against 4.3% inflation. The sector's slow development limits diversification and competition.
What's Next
The AFK recommends focusing on expanding regular contribution coverage, boosting formal employment, and ensuring predictable pension policy. It remains unclear whether the government will introduce measures to mandate or incentivize broader participation, or how private management can be scaled up to improve returns.
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Half of Kazakhstan's workers lack regular pension contributions
