Transfer of saving pension system of Kazakhstan into Singapore’s model is problematic now - Nurymbetov
Astana. January 29. KazTAG - Transfer of the saving pension system of Kazakhstan into the model of Singapore is problematic today, said Birzhan Nurymbet, Minister of Labour and Social Protection.
Mass media talked a lot about the model of the pension system in Singapore. I believe the model of Singapore is the best in the world. Pension savings are distributed into three accounts there: basic, special and medical. When a person reaches the age of 55 the special and basic accounts are untied into the pension one, while the rate of deposits varies depending on the age. But when we discussed it with the work group, we concluded that application of the Singapore’s model in Kazakhstan is problematic," he said at the round table on Wednesday.
"First of all the problem is in the rates of the deposits in the saving system. While 37% are transferred in Singapore, 10% are transferred in Kazakhstan. An employee deposits 20% in Singapore, an employer- 17% until the age of 55. The rates vary. An employee transfers 10% in Kazakhstan, an employer transfers nothing," he said.
The second reason is in different size of average salaries.
"The average salary in Singapore is $42.7 thousand – the deposits are based on this sum, and it makes $3.5 per month. In tenge it is 1.33 mln. The average salary in our state is 180 thousand tenge, we deposit 10%, i.e. 18 000 tenge in the pension fund," he said.
Photo source: picture from an open source