Thursday12 December 2024
toshkent24.com

Can pension funds be withdrawn to pay off a loan in Kazakhstan?

The Joint Accumulative Pension Fund (JAPF) has clarified that current legislation in Kazakhstan does not allow for partial withdrawals of pension savings to pay off loans. This information was reported by Bizmedia.kz.
Можно ли использовать пенсионные средства для погашения кредита в Казахстане?

The primary goal of pension contributions is to provide citizens with support during retirement, and the use of these funds is limited until certain conditions are met.

Who is eligible for pension payments?

According to Article 220 of the Social Code of the Republic of Kazakhstan, the right to receive pension payments is granted to:

  1. Individuals who have reached retirement age.
  2. Citizens with a disability of the first or second group (established indefinitely).
  3. Individuals aged 45 and older who have sufficient savings for a pension annuity.
  4. Citizens who have moved abroad for permanent residence.

Additionally, funds can be used for:

  • Improving housing conditions (for example, paying off a mortgage, purchasing property, or construction).
  • Covering medical services that are not included in the guaranteed volume of free assistance.
  • Transferring savings to private investment management.

However, direct use of pension savings to pay off loans, including fines and penalties, is not permitted.

Special cases

The Unified Pension Fund reminds that partial withdrawal is possible only if the minimum sufficiency threshold or other established conditions are met, but exclusively for purposes allowed by law.

If legislation is revised in the future, the fund will inform citizens about the changes.