From Classic Pension Annuities to New Opportunities
On September 17, 2026, the Kazakhstan Insurance Forum 2026 took place in Almaty, bringing together representatives from the insurance, financial, and pension sectors to discuss key issues regarding the industry's development. A highlight of the forum was a panel discussion titled "Life Doesn't Go According to Plan: Why Are We Afraid to Insure Our Future?" Participants explored the growth of life insurance, long-term financial planning, and new avenues for citizens to secure future income.
The discussion was moderated by insurance market expert and founder of Centras Group, Eldar Abdrazakov. Panelists included Zhanat Kurmanov, Chairman of the Management Board of the Unified Accumulative Pension Fund (UAPF); Adil Mukhamedzhanov, Chairman of the Management Board of the Kazakhstan Stock Exchange (KASE); Gulzhan Zhaksymbetova, Chairwoman of the Management Board of BCC Life; Anastasia Ovsyannikova, Vice President of Bank CenterCredit; Gaukhar Buribayeva, Chairwoman of the Management Board of Halyk-Life; and Murat Kylyshbay, founder of the Islamic fintech company AJR Finance Ltd.
One of the topics addressed was the development of pension annuities as a tool for providing retirement security. Zhanat Kurmanov, Chairman of the Management Board of the UAPF, spoke about the prospects for this sector. He noted that Kazakhstan’s insurance market is growing rapidly and holds significant potential for further expansion. At the same time, he observed that the scale of the insurance industry does not yet fully align with the pace of overall economic development.
"The market for pension annuities is emerging as a key driver for the growth of the life insurance sector. The option to use pension savings to purchase a pension annuity was built into the pension system from the outset as a way for citizens to secure income during their retirement years." Today, Kazakhstanis with pension savings in the Unified Accumulative Pension Fund (UAPF) can choose from various ways to access their funds: scheduled payouts from the UAPF until the balance is exhausted, lifetime annuity payments through an insurance company, or a combination of these options.
The life insurance market is, in many respects, integrated with the investment market. Beyond traditional products—such as immediate, deferred, and joint pension annuities—new opportunities incorporating an investment component are emerging. This is a natural development, as the global life insurance sector is closely linked to the investment market, with insurance companies acting as major institutional investors.
"It is important that a pension annuity is not viewed through a 'buy-and-forget' lens. Citizens should understand the additional benefits this financial instrument offers, particularly regarding long-term financial planning and its investment potential. Further market evolution may lead to the introduction of new, including hybrid, products that combine insurance protection, regular dividends, and investment opportunities," commented Zhanat Kurmanov.
Zhanat Kurmanov also emphasized the need to continue fostering a culture of long-term financial planning among the population. This is especially relevant for young people, who—as noted during the discussion—often focus primarily on short-term financial goals.
Types of pension annuities available to Kazakhstanis
A pension annuity is a contract between an individual and a life insurance company, under which the insurer commits to providing monthly pension payments for life or until a specified age. Various types of pension annuities are available within Kazakhstan’s life insurance market.
An immediate pension annuity provides for the commencement of payments following the conclusion of the contract, in accordance with its terms. A deferred pension annuity entails that payments begin after a specific period, as stipulated in the contract. During this deferral period, the funds may be invested in accordance with the terms of the agreement, which in turn influences the amount of future payouts.
A joint (spousal) pension annuity allows two individuals to combine their pension savings to receive lifetime payments, subject to the terms of the contract. Should one of the participants pass away, the payments continue for the benefit of the surviving partner.
Thus, the development of the pension annuity market expands the options available to individuals for building long-term retirement income and provides additional ways to manage pension savings. Ultimately, the choice between receiving pension payouts from the Unified Accumulative Pension Fund (UAPF) and purchasing a pension annuity is an individual financial decision—one that depends on a person’s specific life circumstances, the size of their accumulated savings, and their retirement planning goals.
