It became possible for Kazakhstani citizens to combine the pension savings of a married couple or close relatives after the signing by the Head of State of the Law of the Republic of Kazakhstan "On amendments and additions to some legislative acts of the Republic of Kazakhstan on regulation and development of insurance market and securities market, banking activities". Now, it is possible to receive lifetime payments without waiting for retirement age and official retirement. The provisions of the Law have been introduced since September 2022. The article provides information on who can use a joint (marital) retirement annuity and how will the income of the parties be redistributed.

2. Benefits of retirement annuity

The key benefit of a joint retirement annuity is the opportunity of merging the pension savings of two spouses or close relatives to acquire a joint retirement annuity, which provides lifetime payments not only to one policyholder, but also to a second policyholder who does not have enough pension savings to conclude a retirement annuity agreement. In the event of death of a husband or wife, or a close relative, the second party to the agreement will continue to receive insurance payouts on schedule. In case of divorce, each of the policyholders will continue to receive insurance payouts on schedule. If one of the spouses (close relatives) is a foreigner or a stateless person who has left for permanent residence outside the Republic of Kazakhstan, then this person has the right to receive the redemption amount, and the second policyholder will continue to receive insurance payouts on schedule. Pursuant to the Code "On Marriage (Matrimony) and Family", parents, adoptive parents, children, including adopted ones, as well as full-blood and half-blood siblings, grandparents and grandchildren are considered close relatives.

3. How to acquire a joint marital annuity?

For instance, a married couple, the 55-year-old husband and wife, have pension savings in the amount of KZT 15 million and KZT 5 million, respectively. To date, the minimum cost of a retirement annuity with a monthly payment of 70% of the subsistence minimum set for the current financial year for the husband amounts to KZT 7.5 million and for the wife to KZT 9.2 million. In the example above, the amount of the wife's savings is insufficient to conclude an individual retirement annuity agreement. By combining savings and concluding a joint retirement annuity agreement with an insurance premium of KZT 20 million, each spouse will be able to receive lifetime monthly payments in the amount of KZT 36.340 taking into account the annual indexation of subsequent payments. When concluding a joint retirement annuity agreement, personal terms of the agreement are determined for each policyholder, including the amount and schedule of personal payments, which will be valid regardless of the death of one of the policyholders.

4. What is the procedure of joint annuity registration?

To acquire a joint annuity you need to carefully study the websites of life insurance companies offering this service; select an insurer and analyze the reviews of other customers. Check whether an insurance company has a license from the Agency for Regulation and Development of the Financial Market. This can be done on the financial regulator's website. Look through the agreement clauses. The agreement is concluded in three copies: one for a depositor, the others for an insurance company and UAPF. Notify the UAPF on conclusion of the retirement annuity agreement within 10 calendar days from the date of its conclusion, and it will transfer all the funds to an insurance company. That is, now you and your spouse or a close relative will receive not a pension, but an insurance payout. An insurance company will manage the insurance premium by investing in financial instruments. You have the right to change an insurance company. This can be done on expiry of two years after the conclusion of an agreement. If you have any additional questions on how to acquire a retirement annuity, you can apply to the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market via the "Fingramota Online" mobile app.