Abstract:
The research work describes the current pension system of Kazakhstan, its main issues, performance,
adequacy, and working environment. The main milestones of developing the pensions system are shown.
The advantage and drawbacks of two type pension systems, such as Pay-as-you-go and cumulative
components are analyzed and the current performance of the Unified accumulative pension fund is
investigated. The main worldwide coefficients such as pension coverage, investment income of pension fund,
government expenses amount, replacement ratio as well as a demographic tendency, and general economic
development were analyzed, discussed, and summarized. The analysis of Kazakhstan’s pension system
allowed to reveal their problems. The result of such analysis transferred into the next step of evolution of the
pension system, which already considered by our government – the introduction of the notional defined
component into the pension system of Kazakhstan. Generally, it is a relatively recent form of development
of the pension system. For the introduction this system the world's best practice on the example of Sweden
was reviewed and compared with Kazakhstan's capabilities. Considering that each country in the world has
its features of development in an economic and political context, our government should consider at least the
following issues of implementation of the notional defined component into the pension system of
Kazakhstan: nature of our economy, human welfare, level of social responsibility, and other main factors.
The prospective development of the pension system is analyzed and recommendations for further
development are designed.
