Kazakhstan ranks 24th in the 2024 Mercer CFA Institute Global Pension Index, outperforming the US and Saudi Arabia. The evaluation highlighted strengths in sustainability and integrity, while adequacy requires improvements. The report recommends limiting pre-retirement fund access and increasing older labor participation to strengthen the pension framework.
Kazakhstan has achieved recognition in the Mercer CFA Institute Global Pension Index (MCGPI) by securing the 24th position out of 48 countries. This ranking, released on October 15, highlights the effectiveness of Kazakhstan’s pension system across three critical sub-indices: adequacy, sustainability, and integrity. The nation garnered a commendable 45.8 points for adequacy, 73.1 points for sustainability, and an impressive 80.4 points for integrity. Overall, Kazakhstan obtained a score of 64.0 points, earning a C+ rating, and surpassed several prominent countries, including the United States and Saudi Arabia. The MCGPI assesses pension systems through over 50 indicators focusing on three main aspects: adequacy, sustainability, and integrity. Despite Kazakhstan’s strong performance in sustainability and integrity, concerns regarding the adequacy of the pension system emerged, pinpointing the necessity for improvements. Among the highlighted vulnerabilities, the report indicated the urgent need to enhance the pension system’s resilience against demographic shifts, such as declining birth rates and increasing life expectancy. To address these challenges, the Mercer CFA Institute recommends specific strategies, including curbing pre-retirement withdrawals from pension funds, which could improve the adequacy score. Additionally, promoting higher labor force participation among older individuals is crucial as life expectancy continues to rise. This proactive approach aims to fortify Kazakhstan’s pension landscape, enabling it to better adapt to the evolving demographic situation.
The Mercer CFA Institute Global Pension Index (MCGPI) is an annual report that evaluates the pension systems of nations worldwide, measuring them against critical indicators that assess their capacity to provide adequate retirement income. The index employs three primary sub-indices—adequacy, sustainability, and integrity—to ascertain the overall performance of pension systems. The 2024 report demonstrates Kazakhstan’s resilience and efficiency in its pension framework while indicating areas necessitating enhancement due to shifting demographic trends.
In conclusion, Kazakhstan’s position in the 2024 Mercer CFA Institute Global Pension Index reflects a commendable performance, particularly in sustainability and integrity, while also identifying critical vulnerabilities in adequacy. By addressing these weaknesses and implementing recommended reforms, Kazakhstan endeavors to enhance its pension system’s robustness in response to the challenges presented by an aging population and the need for more sustainable retirement solutions.
Original Source: astanatimes.com
