Kazakhstan ranked 24th out of 48 countries in the 2024 Global Pension Index, achieving high scores in sustainability and integrity. The country received a C+ rating, outperforming the US and Saudi Arabia. Recommendations for improvement include better management of private pension funds and bolstering older worker participation as life expectancies rise.
Kazakhstan has secured the 24th position in the 2024 Mercer CFA Institute Global Pension Index (MCGPI), published on October 15th. This ranking places Kazakhstan ahead of several developed nations, including the United States and Saudi Arabia. The index evaluates pension systems based on three primary sub-indices: adequacy, sustainability, and integrity, encompassing over 50 indicators. Kazakhstan’s scores include 45.8 points for adequacy, 73.1 points for sustainability, and a commendable 80.4 points for integrity, resulting in an overall score of 64.0 and a C+ rating. Despite these positive evaluations, the report indicates that there is a critical need to enhance Kazakhstan’s pension system, particularly in terms of adequacy. To improve the overall performance, the MCGPI recommends measures such as limiting access to private pension funds prior to retirement to reduce preretirement leakage and encouraging greater labor force participation among older individuals, given rising life expectancies. The ongoing demographic shifts towards older populations necessitate urgent reforms in pension frameworks. Notably, the World Economic Forum has highlighted a significant demographic change, stating, “there are now more people over the age of 65 than there are under the age of five — a dispersion that’s never occurred before.”
The Global Pension Index, established by Mercer and the CFA Institute, serves to analyze and compare the pension systems of various countries, providing a comprehensive assessment through multiple indicators. The MCGPI aims to inform policymakers about the strengths and limitations of global pension frameworks, especially as demographic changes pose increasing challenges amid declining birth rates and rising life expectancy. Kazakhstan, with its ambitious goals toward economic and social reform, is positioned to address these imperatives as it navigates the complexities of improving its pension system. The MCGPI framework provides critical insights that can guide the necessary transformations.
Kazakhstan’s strong showing in the 2024 Global Pension Index reflects significant achievements in sustainability and integrity within its pension system. However, the emphasis on adequacy highlights the need for reforms that will enhance the overall effectiveness of the pension framework. Implementing recommended measures will be crucial as the nation seeks to adapt to changing demographic realities. Kazakhstan’s position in comparison to other major economies indicates potential for growth and improvement in its social security landscape.
Original Source: astanatimes.com
