The pension system of Kazakhstan: current state and reform directions

One of the key components of state social policy is the quality of pension provision, which reflects the level of responsibility and capability of the current government to ensure protection for citizens who have lost their ability to work due to age or health conditions.
The aim of the study is to analyze the main aspects of pension provision in the Republic of Kazakhstan, identify existing problems, assess their impact on the sustainability and adequacy of the pension system, and justify the need for its reform.
Research methodology. The article employs general scientific methods of inquiry, including logical and historical approaches, comparative analysis, the method of analogies, and the method of scientific abstraction. Research findings. The analysis of Kazakhstan's current pension system revealed key risks and challenges related to the adequacy of pension assignments and payments, as well as the effectiveness of managing mandatory pension contributions. The study identifies institutional shortcomings in the current pension provision model, caused by changes in the implementation of the conceptual foundations of pension reform.
Originality and practical significance of the study. Based on the analysis, previously unexplored causeand-effect relationships of existing pension provision problems have been identified. The authors propose recommendations on several organizational and systemic issues, the implementation of which may contribute to improving the sustainability and adequacy of Kazakhstan’s pension model.

1. Holzmann, R. (2013). Global pension systems and their reform: Worldwide drivers, trends and challenges. International Social Security Review, 66(2), 1–29. Available at: https://doi.org/10.1111/issr.12007

2. Jimon, S. A., Dumiter, F. C., & Baltes, N. (2021). Financial Sustainability of Pension Systems: Empirical Evidence from Central and Eastern European Countries. Cham: Springer. Available at: https://doi.org/10.1007/978-3-030-74454-0

3. Kotlikoff, L., & Burns, S. (2005). The Coming Generational Storm: What You Need to Know About America's Economic Future (Russian edition). Moscow: Alpina Business Books.

4. Barr, N., & Diamond, P. (2009). Reforming pensions: Principles, analytical errors and policy directions. International Social Security Review, 62(2), 5–29. Available at: https://doi.org/10.1111/j.1468-246X.2009.01327.x

5. Yelemesov, R. E., Zholdasbay, ZH. B., & Ospanbayev, ZH. A. (2021). Formation and development of the pension system in Kazakhstan: A retrospective analysis. Russian Foreign Economic Bulletin, (3), 7–17. Available at: https://doi.org/10.24412.2072-8042-2021-3-7-17

6. Tusibayeva, G., & Balginova, K. (2023). Modern approaches to the modernization of the pension system in the Republic of Kazakhstan. State Audit, 59(2), 19–27.

7. Egorov, E. V., & Bakytyzhanova, A. M. (2020). Trends and directions of pension system improvement in the Republic of Kazakhstan. Vestnik of Moscow University. Series 21: Public Administration, (3).

8. Zakirova, Y. S. (2021). Pension provision in the Republic of Kazakhstan: Assessment and development prospects. New World Economy, 6(2), Issue 21, 50.

9. Bekbosinova, A. S., Oshanova, K. E., Khasenova, K. K., Alpysbayeva, A. K., & Moldasheva, A. B. (2022). Advantages and disadvantages of early pension withdrawals: Expert evaluation. Economy: Strategy and Practice, 17(3), 242–258. Available at: https://doi.org/10.51176/1997-9967-2022-3-242-258

10. Solovyev, A. K. (2013). Institutional foundations of market pension reform. World of New Economy, (3–4).

11. Temirbayev, D. (2020, October 22). It is necessary to eliminate conflict of interest in the management of pension savings. Inbusiness.kz. Available at: https://inbusiness.kz/ru/news/

12. Zhaumitova, M. ZH. (2021). Improving pension provision for citizens in the Republic of Kazakhstan. Academy of Public Administration under the President of the Republic of Kazakhstan. Available at: http://repository.apa.kz/xmlui/handle/123456789/572

13. Zharikbayeva, D. T., Seleznyova, I. V., Markelova, M. A., & Abdildin, S. S. (2024). Pension system of Kazakhstan: Analysis of savings, investment portfolio overview and income growth prospects. Turan University Bulletin, (3), 166–178. Available at: https://doi.org/10.46914/1562-2959-2024-1-3-166-178

14. Zhamalov, A. (2024, August 29). Pension or disappointment: How to reform the pension system? Kazakhstan Pravda. Available at: https://kazpravda.kz/n/pensiya-ili-razocharovanie-kak-reformirovatpensionnuyu-sistemu/

15. Ministry of Economy of the Republic of Kazakhstan. (2022). Analytical report on budgetary risks and the long-term sustainability of public finances until 2050, p. 67. Available at: https://www.gov.kz/memleket/entities/economy/documents/details/362610?lang=ru

16. OECD. (2020). OECD Tax Policy Reviews: Kazakhstan 2020. Paris: OECD Publishing. Available at: https://doi.org/10.1787/872d016c-en

17. World Bank Group. (2024). Kazakhstan Economic Update, Winter 2023–2024: Shaping Tomorrow – Reforms for Long-Term Prosperity. Available at: https://www.vsemirnyjbank.org/ru/country/kazakhstan/publication/economic-update-winter-2023-24

18. Government of Kazakhstan. (2024). Public Finance Management Concept until 2030. Approved by Presidential Decree No. 1005, dated 10.09.2022 (as amended on 29.06.2024). Available at: https://online.zakon.kz/Document/?doc_id=35886354

19. Bureau of National Statistics of the Republic of Kazakhstan. (2024). Demographic statistics. Available at: https://stat.gov.kz/ru/industries/social-statistics/demography/

20. Unified Accumulative Pension Fund (ENPF). (n.d.). Statistics and analytics: Active contributors. Available at: https://www.enpf.kz/ru/indicators/pensionnye-nakopleniya-i-scheta/aktivnye-vkladchiki.php

21. Unified Accumulative Pension Fund (ENPF). (n.d.). Informational bulletin. Available at: https://www.enpf.kz/upload/iblock/6c3/sx4cllqcjhkkf8bg4w6f34pt3xg0n65s.pdf

22. Informburo.kz. (n.d.). Pensions replace only 42% of income – National Bank. Available at: https://informburo.kz/novosti/pensii-tolko-na-42-zameshhaiut-doxod-kazaxstancev-nacbank

23. Unified Accumulative Pension Fund (ENPF). (2024). Demographic trends in Kazakhstan: Results of 2024 and forecasts. Available at: https://www.enpf.kz/ru/press-center/news/191021/

24. Unified Accumulative Pension Fund (ENPF). (2023). Annual Actuarial Report, p. 42. Available at: https://www.enpf.kz/ru/indicators/aktuarnye-raschety-i-prognozy/actuarial.php