Kazakhstan introduces new rules for use of pension savings

The rules on the use of pension savings will change. In particular, Kazakh citizens may be allowed to invest the withdrawn money as a share contribution under an agreement of equity participation in a housing construction cooperative, which must be registered with the local administration. In addition, the employer is now able to provide his employee with a loan to purchase a residential property. In order to repay the debt, the employee is given the opportunity to use his pension savings. However, an important condition is that the purchased property must be encumbered by the lender. Citizens can put the excess balance of their pension savings into the account of housing contribution savings. Nevertheless, prohibitions have also been introduced. Thus, it is not allowed to use pension savings to buy housing from close relatives of a spouse. Also, the deadlines for transferring the money from the Unified Accumulative Pension Fund have been extended from three to 10 days.

Translation by Assem Zhanmukhanova

Editing by Galiya Khassenkhanova