Kazakhstan’s Pension System Ranks Higher Than Singapore and China in Allianz Index
Kazakhstan Makes Strides in Pension System, Ranks 26th Globally
Astana – Kazakhstan has made significant progress in its pension system, climbing to the 26th place among 71 countries in the Allianz Pension Index (API). This achievement marks a significant improvement from the country’s 34th position in 2023, as reported by the Unified Accumulative Pension Fund on March 18.
The API evaluates pension systems based on sustainability and adequacy, using 40 parameters scored from 1 to 7, with 1 indicating the best performance. Kazakhstan received an overall score of 3.5 in the assessment. The country scored 4.1 points for demographic change, public debt, and general standard of living, 3.6 for pension system sustainability, and 3.2 for providing an adequate standard of living in old age.
Comparatively, the global average score stood at 3.7, with Denmark leading the rankings with 2.3 points, followed by the Netherlands and Sweden with 2.6 points. On the other hand, the lowest-ranked systems were found in countries such as Morocco, India, Laos, Malaysia, and Sri Lanka, scoring between 4.5 and 5 points. The main contributing factor to their low rankings was the low population coverage by the pension system, mostly due to the prevalence of informal employment.
The report also delves into the challenges of population aging, highlighting the projection that by 2050, the number of people aged 65 and over is expected to nearly double from 857 million to 1.58 billion, according to the latest United Nations data.
Kazakhstan’s improved ranking in the API is a testament to the efforts made in enhancing its pension system, ensuring sustainability and adequacy for the aging population. As the country continues on this positive trajectory, it sets a promising example for others striving to achieve similar success in pension reform and management.
