Astana, Kazakhstan – Kazakhstan's pension system has achieved a notable advancement in the 2024 Allianz Pension Index (API), climbing to 26th place out of 71 assessed systems, according to a report released on March 18th by the Unified Accumulative Pension Fund. This improvement signifies a substantial leap from the nation's 34th position among 75 countries in the previous year.   

The API, a comprehensive evaluation tool, assesses pension systems worldwide based on two critical criteria: sustainability and adequacy. Utilizing 40 distinct parameters, the index assigns scores ranging from 1, representing the highest performance, to 7, indicating the lowest. Kazakhstan's overall score of 3.5 demonstrates its progress, placing it ahead of several prominent nations, including Austria, Spain, Chile, Singapore, Hong Kong, and China.  

In specific categories, Kazakhstan received a score of 4.1 for demographic changes, public debt, and general living standards; 3.6 for the sustainability of its pension system; and 3.2 for the adequacy of its provisions for elderly citizens. These results are compared to a global average score of 3.7.   

The 2024 API rankings are led by Denmark, which achieved an outstanding score of 2.3. The Netherlands and Sweden closely followed, both earning scores of 2.6. Conversely, the pension systems of Morocco, India, Laos, Malaysia, and Sri Lanka were ranked at the bottom of the index, scoring between 4.5 and 5. These lower rankings are primarily attributed to the limited coverage of their pension systems, largely due to the prevalence of informal employment.   

A significant focus of the API report is the global demographic trend of an aging population. According to the latest United Nations projections, the number of individuals aged 65 and over is expected to nearly double from 857 million to 1.58 billion by the year 2050. This demographic shift presents substantial challenges for pension systems worldwide, underscoring the importance of sustainable and adequate retirement provisions.

[Copyright (c) Global Economic Times. All Rights Reserved.]