Kazakhstan to change pension savings guarantee mechanism from January 1, 2027

September 22, 2026 at 01:54 PM2 min

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Kazakhstan will change its state guarantee mechanism for pension savings from January 1, 2027, the Ministry of Labor and Social Protection announced. The state will guarantee only the nominal amount of contributions actually made to the Unified Accumulative Pension Fund, ending compensation for inflation-linked shortfalls. The change reflects expanded rights for savers to choose investment strategies and management companies.

Key Facts

From January 1, 2027, Kazakhstan will guarantee pension contributions in the Unified Accumulative Pension Fund only at their nominal, actually contributed amount, not adjusted for inflation.
The change is based on Article 217 of the Social Code of Kazakhstan.
The Ministry of Labor and Social Protection stated that the state is not abandoning the guarantee of pension contributions in the UAPF.
The National Bank of Kazakhstan will form the list of financial instruments permitted for investing pension assets.
From December 2027, pension savings transferred to Otbasy Bank deposits for housing that remain unused after six years will be returned to the UAPF.

Current Guarantee Mechanism

Currently, when a citizen becomes entitled to pension payments, the state calculates the difference between the sum of actually contributed pension contributions adjusted for inflation and the amount of pension savings in the UAPF. If a difference arises, it is paid from the republican budget. This mechanism compensates savers when investment returns fall below the inflation rate.

New Guarantee Framework

From January 1, 2027, the state will guarantee only the nominal amount of pension contributions actually transferred to the UAPF. The Ministry of Labor explained that previously citizens could not influence the investment strategy of their pension savings. Because the state determined investment policy and restricted savers' rights, it assumed the obligation to compensate the difference between actual returns and inflation. With the expansion of savers' rights to choose a management company and investment strategy, the original legal and economic logic of the state guarantee loses its meaning.

Pension Asset Governance

The system of managing pension assets remains under multi-level state control. The Council for Management of the National Fund, headed by the President, determines the main directions of investment policy, considers proposals to improve asset management efficiency, and hears reports on investment results. The National Bank forms the list of financial instruments permitted for investing pension assets. The Government approves the appropriate approaches and key parameters of investment policy.