Kazakh Citizens Given Right to Withdraw Pensions, Reinvest Into Housing 

NUR-SULTAN – Kazakhstan’s Unified Accumulative Pension Fund has started accepting applications for the withdrawal of eligible amounts of pension savings by citizens on Jan. 23. Kazakh citizens intend to address housing issues with 87 percent of withdrawn pension savings, said the Chairman of the Kazakh National Bank Yerbolat Dossayev at a Feb. 16 government meeting with the Prime Minister Askar Mamin. 

Photo credits: forbes.com.

As of Feb. 12, 115,608 applications were accepted for the partial withdrawal of pension savings reaching 1.8 billion tenge (US$4.3 millions), said Dossayev. 

Out of the accepted applications, 78,074 applications amounting to 423.6 billion tenge (US$1 billion) were accepted for processing and were approved.

Kazakh citizens intend to use 87 percent of the withdrawn savings to address housing issues. 

Out of the total, 45.5 percent of withdrawn savings will be taken for the purchase of housing; 28.3 percent of withdrawn savings for the repayment of mortgage loan debt, 10.5 percent will be taken for obtaining a mortgage in Otbasy Bank, for an initial payment in second-tier banks, 2.3 percent will be withdrawn for the construction of individual housing, mortgage refinancing, debt repayment under a lease agreement with the right to purchase and other purposes.

The decree allowing citizens to withdraw pension savings was signed by Kazakh President Kassym-Jomart Tokayev, as part of the broader effort to reform the country’s pension system. 

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