How stable is Kazakhstan's pension system?

Recently Allianz published an updated global pension report, where Kazakhstan ranked 26th out of 71 countries, significantly improving its position compared to 2023 (34th out of 75 countries). Kazakhstan overtook Austria, Singapore, Hong Kong, China, Spain, and Chile. The Allianz rating evaluates its complex systems on three sub-indices. The overall score of Kazakhstan was 3.6 points (on a scale from 1 to 7, where 1 is the best result). One of the indicators is the stability of the pension system. What does this mean? This is the ability of the country's pension system to work effectively and continuously in the long term.

Important aspects of sustainability:

1. Financial stability: having enough funds to pay pension in the future.

2. Reliability of savings mechanisms: efficient management of pension funds so that the funds in citizens' accounts grow taking into account inflation.

3. Adaptation to demographic changes: the ability of the system to maintain a balance between the number of working citizens paying contributions and the number of pensioners receiving payments.

4. Social justice: Ensuring equality of opportunity for all citizens in the matter of retirement. If the pension system is stable, it can withstand economic crises, demographic changes such as population aging, and provide a decent standard of living for retirees. According to this indicator, Kazakhstan scored 3.6 points. This result is higher than the indicator of many advanced economies such as Norway (4.0), Switzerland (4.2), Singapore, Spain (each 4.4), Malaysia (5.4). The full report can be found through the link in the first comment: https://www.enpf.kz/ru/indicators/obzory-mezhdunarodnykh-ekspertov/mezhdunarodnye-reitingi/

Source : https://www.gov.kz/memleket/entities/aqmola-atbasar-marinov/press/news/details/975529?lang=kk