Young Kazakhs Utilize $5.32 Million in 2024 Through the "National Fund for Children" Program, DKnews.kz reports.
The first results of the "National Fund for Children" program, which allows Kazakhstani citizens to access targeted savings upon reaching adulthood, have been revealed. As of January 1, 2025, the Unified Accumulative Pension Fund (UAPF) processed 53,001 applications, disbursing a total of $5.32 million. These funds, accrued from the National Fund of the Republic of Kazakhstan, were used by young adults for two primary purposes: housing improvements and education expenses.
Utilization of Targeted Savings
Housing Improvements
Out of the total, 29,542 applications were fulfilled for $2.96 million to improve housing conditions. The most popular subcategories were:
- Supplementing housing construction savings for future accumulation:
- 28,752 applications processed for a total of $2.89 million.
- Purchasing housing through civil transactions (final settlement):
- 245 applications processed for a total of $24,570.
- Making an initial deposit for a mortgage loan:
- 232 applications processed for a total of $23,120.
These figures highlight young adults' preference for strategically investing in housing, either by building up savings for larger future purchases or securing favorable mortgage terms.
Education Expenses
Another 23,459 applications amounting to $2.35 million were used for education. The popular subcategories included:
- Payment for educational services within Kazakhstan:
- 19,728 applications processed for a total of $1.98 million.
- Supplementing educational savings accounts under relevant agreements:
- 2,820 applications processed for a total of $282,970.
- Payment for overseas education services (either per academic period or for the entire course):
- 790 applications processed for a total of $79,290.
These choices underline the importance placed by young Kazakhs on accessing quality education, both domestically and internationally.
How the Program Works
The "National Fund for Children" program enables minors under 18 years to accumulate savings from Kazakhstan's National Fund. Upon turning 18, participants gain access to these funds, which they can use for designated purposes such as housing and education.
Key Mechanisms
- Participants: Citizens of Kazakhstan under 18 years of age are eligible for targeted savings.
- National Bank of Kazakhstan: Annually (by October 1), the National Bank submits a report to the UAPF, detailing the total amount of savings, average investment return rates, and accumulated investment income.
- Unified Accumulative Pension Fund (UAPF): By January 15 of each year, the UAPF compiles an electronic list of eligible participants based on data from the state database.
- Calculation and Allocation: The UAPF calculates and credits targeted savings, including investment income, to participants' accounts. All amounts are maintained and disbursed in USD.
2025 Outlook
In 2025, targeted savings will be allocated to Kazakhstani citizens born in 2007, who will turn 18 during the year. The savings for 2024, along with investment income, will be credited to their accounts no later than February 1, 2025. This timeline ensures seamless access to funds as new beneficiaries reach adulthood.
The "National Fund for Children" program is a transformative initiative, empowering young Kazakhs to start their adult lives with financial resources to invest in key areas like housing and education. With a clear structure, transparent operations, and increasing participation, the program is set to continue making a profound impact on the lives of future generations.
