How to use part of your pension savings and for what?
President Kassym-Jomart Tokayev signed a bill in January 2021 allowing Kazakhstanis to spend part of their pension funds.
What does this mean?
That now residents of the Republic of Kazakhstan with an amount exceeding the “sufficiency threshold” can use part of the lump-sum pension payments to improve their living conditions and (or) pay for treatment.
The procedure for using lump-sum pension payments to improve housing conditions is prescribed in the “Rules for the use of lump-sum pension payments to improve housing conditions in accordance with the legislation of the Republic of Kazakhstan” dated January 21, 2021 and in the “Rules for the use of lump-sum pension payments for treatment” dated February 15, 2021
If you want to withdraw part of your savings, which banks should you apply to?
Halyk Bank, Otbasy Bank, Altyn Bank, Bank CenterCredit are Kazakh banks that participate in a program that allows citizens to withdraw their pension savings ahead of schedule.
Through the site enpf.kz, you need to register, or enter your personal account and independently check the information on the available amount of the lump-sum pension payment.
To withdraw pension funds, an electronic digital signature (EDS) and an extract from an individual pension account are required.
What do I need to do to open a special account?
To open a special account, you must contact one of your operators (bank).
For example, to work with Otbasy Bank, you need to go to the enpf-otbasy.kz website or download the ZhSSB24 mobile application. There you can create your account to which your pension savings will be transferred.
You will need to log in with your username and password. Further, your personal account can be used to apply for opening a special account. You must click on the button “Open an account for the EPO”, after signing and verifying, within some time your account will be ready for use.
In applications for receiving payments, the number of the special account to which the pension money will be transferred is indicated. You must also state why you are withdrawing your pension funds and how much money you have on hand. It also includes personal income tax (PIT) withholding methods.
Within 2 working days, the authorized operator will send an electronic notification to the UAPF containing information on the accepted application for payment, including data on the purpose of the withdrawal, full name, DR, IIN, the amount of the lump-sum pension payment in the amount determined by the contributor (recipient), methods of withholding the IIT, EDS.
After receiving an electronic notification from the UAPF, within 5 business days, sends the amount of the contributor’s (beneficiary’s) lump-sum pension payment to an authorized operator, which then credits it to your special account.
Before exercising your right to use part of your pension savings, you must first check and make sure that the amount allowed for withdrawal is available in the individual pension account with the UAPF.
It is important to note that from April 1, 2022, the minimum sufficiency thresholds for withdrawing pension savings will be increased.
In the table, we present the indicators of “sufficiency thresholds” calculated by the UAPF, the validity of which begins in April 2022.
| Age, years | Thresholds for minimum sufficiency of pension savings, tenge | Age, years | Thresholds for minimum sufficiency of pension savings, tenge |
|---|---|---|---|
| 20 | 3 140 000 | 40 | 5 790 000 |
| 21 | 3,250,000 | 41 | 5 950 000 |
| 22 | 3 370 000 | 42 | 6 100 000 |
| 23 | 3 490 000 | 43 | 6 260 000 |
| 24 | 3 610 000 | 44 | 6 420 000 |
| 25 | 3 730 000 | 45 | 6 580 000 |
| 26 | 3 860 000 | 46 | 6 750 000 |
| 27 | 3,980,000 | 47 | 6 920 000 |
| 28 | 4 110 000 | 48 | 7 090 000 |
| 29 | 4,240,000 | 49 | 7 260 000 |
| 30 | 4 370 000 | 50 | 7 430 000 |
| 31 | 4,510,000 | 51 | 7 610 000 |
| 32 | 4,640,000 | 52 | 7 790 000 |
| 33 | 4,780,000 | 53 | 7 970 000 |
| 34 | 4,920,000 | 54 | 8 150 000 |
| 35 | 5,060,000 | 55 | 8 340 000 |
| 36 | 5 200 000 | 56 | 8 530 000 |
| 37 | 5 350 000 | 57 | 8 720 000 |
| 38 | 5 490 000 | 58 | 8 920 000 |
| 39 | 5 640 000 | 59-62 | 9 120 000 |
* If you need legal advice on the use of pension savings, then you can contact the law firm KORGAN at any time in person or by phone: +7 701 705 82 48.
There is a specific list where the use of lump-sum pension payments is allowed. Does it include?
- full settlement under contracts for the sale, privatization, installment plan, exchange (exchange) of a dwelling, under contracts for equity participation in housing construction with a guarantee in accordance with the legislation on equity participation;
- construction of an individual residential building, including the acquisition of land;
- making a down payment for a mortgage loan;
- receipt, partial or full repayment of debt, refinancing of a housing mortgage loan;
- purchasing a home financed by an Islamic bank;
- partial or full repayment of debt under long-term housing lease agreements with the right to purchase.
List of medical services for which you can use your pension savings:
- treatment of orphan (rare) diseases, including their drug supply, as well as diagnostic studies to determine treatment tactics;
- dental services provided in medical organizations in Kazakhstan;
- reconstructive and restorative operations (plastic) for the purpose of correcting postoperative scars and congenital defects, of a cosmetic nature on the soft tissues of the body;
- diseases requiring radionuclide and radioiodine therapy, radiosurgical treatment (gamma knife, cyberknife) and proton therapy;
- medical rehabilitation in domestic medical organizations, including in sanatorium and resort conditions located on the territory of Kazakhstan;
- ophthalmic services (laser vision correction, cataract treatment with multifocal lenses, intravitreal injections of angiogenesis inhibitors).