Current Situation and Challenges of the Pension System in Kazakhstan

Abstract

Kazakhstan's public pension system consists of several components, including the universal State Basic Pension, the compulsory Old-Age Solidarity Social Insurance, the mandatory Individual Account, and an Old-Age Social Pension of a social assistance type. Currently, Kazakhstan is in the process of transitioning to a post-socialist welfare system. In light of this transition, we suggest that the government shares the responsibility of financing the Old-Age Social Pension with people as pension participants. It is essential to clarify the role of each tier of the pension system to ensure adequate retirement income. Also, steps should be taken to prevent a blind proliferation of social security funds and ensure the unique role of each fund in the system. Lastly, efforts should be made to coordinate the social security system from a holistic perspective.