Unable Access to Savings by Residents in Northern Kazakhstan
Article Title: Pension Savings Withdrawal in Kazakhstan: Regional Variations and Challenges
In the recent development allowing Kazakhstanis to access their pension savings, it has been observed that the ability to withdraw these savings varies significantly across different regions.
The regions with the highest percentage of contributors who can withdraw their EPF savings are not surprising, given their connection to the financial sector and large businesses. Leading the pack is Almaty with 26%, followed closely by the Mangistau region (16%), the capital (13%), and the Atyrau region (10%). On the other hand, agricultural regions such as Akmolinsk, Zhambyl, Turkestan, and North Kazakhstan have the lowest percentages, indicating a challenge in meeting the withdrawal requirements.
One resident of Petropavlovsk, Natalia Ivanova, a 30-year veteran of various sectors including retail, has not accumulated half of the threshold amount in her pension fund. Despite this, she believes that people with low income, like herself, should have the right to withdraw their pension savings first.
Ashat Amanzholy, a 21-year-old student at K. Kuybhev University, began working at 19. He dedicates all his time to studying and finds it impossible to accumulate the necessary sum to withdraw money from the pension fund in just two years.
The requirements for withdrawing pension savings in Kazakhstan generally include reaching retirement age and adhering to the rules set by the Unified Accumulative Pension Fund (UAPF). Until 2026, pension payments and lump-sum withdrawals from the UAPF are treated as taxable income and subject to a 10% personal income tax (PIT) withholding. However, from January 1, 2026, these payments will be exempt from PIT, which might encourage withdrawals.
The reasons for the low percentage of residents in Northern Kazakhstan able to meet the withdrawal requirements are likely due to structural and economic factors limiting their ability to accumulate sufficient pension savings or meet conditions for withdrawal. These may include insufficient contribution periods, low accumulation of pension savings, or difficulties in fulfilling conditions like official retirement age or residency requirements.
Additional factors potentially relevant include socio-economic conditions in Northern Kazakhstan that may limit sustained pension contributions or awareness and administrative hurdles. However, direct data from the search results does not specifically support this for Northern Kazakhstan. Furthermore, fraud attempts such as swindlers stealing pension savings show the vulnerability of pension funds, which may also affect residents' ability or willingness to claim their pensions.
In conclusion, while the withdrawal requirements involve reaching retirement and previously paying tax on withdrawals (soon to be exempted), the small percentage of residents in Northern Kazakhstan able to meet these is likely due to structural and economic factors limiting their ability to accumulate sufficient pension savings or meet conditions for withdrawal. Detailed region-specific reasons were not found in the current data.
Young Kazakhstanis can also access their pension savings, but the challenge lies in accumulating enough savings within a short period, as seen in the case of Ashat Amanzholy. Natalia Ivanova, with her 30 years of work experience, despite being in a region with a low percentage of contributors who can withdraw their EPF savings, continues to hope for reforms that would allow people with low income to withdraw their pension savings first.
In light of the regional variations in pension savings withdrawal in Kazakhstan, it is important to consider the role of personal finance management in accumulating sufficient savings for withdrawal. For instance, Ashat Amanzholy, a young student, finds it challenging to accumulate the necessary sum for withdrawal within the given two years of his employment due to his focus on studies.
On the other hand, Natalia Ivanova, a long-time worker, despite living in a region with low withdrawal rates, believes that individuals with low income should have priority when it comes to pension savings withdrawal, highlighting the significance of personal-finance planning in this context.
