Insurance premium receipts under pension annuity contracts are breaking records. Over the past year, they reached 130 billion tenge, increasing by more than 82 percent. Experts attribute the popularity of this product to several factors. One of them is the reduction in the price of such an agreement.
“First of all, the cost of the pension annuity was reduced compared to previous years. In 2021, the retirement annuity was cheaper than it was in 2020, 2019 and in 2018. Accordingly, as they became cheaper, their audience expanded significantly and more people, who had not heard about this program before, they just found out about it and it became available to them. People are afraid of inflationary risks, they want to get faster access to their savings, so it's clear why this product - annuity - is attractive to them,” said Assyl Turgayev, a spokesperson, State Annuity Company.
Despite a significant reduction in prices, this sector of the economy is still not expected to increase sales of pension annuities among the citizens of Kazakhstan, as it was last year.
“There will be sales; they will grow, but this year it is unlikely that there will be such a surge in the market as it was last year. But at the same time, there is a stable growth dynamics, because the program itself is popular; it is in demand, and it is useful. It has its own advantages. The product gives a choice, gives an alternative on how to have a stable income at an older age and at the same time get early access to retirement savings,” added Assyl Turgayev.
Currently, men in Kazakhstan retire at the age of 63. The retirement age for women is 60, but it is planned to gradually increase it to 63. The conclusion of a pension annuity with insurance companies may allow one to retire earlier. Depending on our citizens’ retirement age, they can receive pensions from the state budget, established by the country’s legal system.
Translation by Assem Zhanmukhanova
Editing by Saule Mukhamejanova
Web-editor: Admin
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