On June 27, 2025, the National Bank of Kazakhstan released a new issue of its flagship publication, the Economic Review. But this isn’t just a bundle of statistics. It’s a snapshot of the country’s economic heartbeat. This edition dives into three big themes that matter to every citizen: the pension system, the impact of oil price shocks, and the future of cash in a rapidly digitalizing world. What did the experts uncover? Let’s take a closer look.
Pensions: How Kazakhstan Built a Model Others Now Follow
Back in the late 1990s, Kazakhstan made a bold move. It walked away from the Soviet-era pension model and became the first country in the CIS to introduce a fully funded, individualized pension system. Risky? Yes. Visionary? Absolutely.
photo by Maxim Zolotukhin/Zakon.kz
Today, the Unified Accumulative Pension Fund (UAPF), where workers deposit 10% of their earnings every month, manages 22.4 trillion tenge. That’s not just money for the future — it’s capital that fuels national development.
And the returns are real. In 2024, the pension fund’s investment income hit 17.8%, comfortably outpacing the 8.6% inflation rate. That means pensions aren’t just holding their value — they’re growing.
Globally, Kazakhstan is gaining recognition too. In 2023, it ranked 20th out of 47 countries in the Mercer CFA Global Pension Index — ahead of the U.S., France, and Spain. Strong marks for sustainability and governance prove the system is on the right path.
But challenges remain. Minimum pensions are still too low, and voluntary contributions have yet to catch on. New measures, including mandatory employer contributions and greater control for savers over their own funds, are now in place. Still, more work lies ahead to ensure retirement doesn’t mean poverty.
Oil Still Calls the Shots — For Now
Kazakhstan isn’t just an oil economy — but oil still calls the shots.
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Analysts from the National Bank examined how global oil price shocks ripple through Kazakhstan’s economy. And the findings were clear: we’re still highly sensitive to every dip and surge.
When prices go up — government revenues swell, and the tenge strengthens. When they fall — exports drop, the currency weakens, and inflation bites.
Yes, we have a National Fund, fiscal buffers, and a floating exchange rate. But long-term resilience demands more: smarter risk management, stronger non-oil sectors, and a nimble monetary policy that can pivot quickly. So far, we’re making progress — but we’re not out of the woods yet.
Cash: Alive and Well in a Digital World
It’s 2025. QR codes, mobile wallets, digital tenge — everywhere. So cash should be history, right? Not quite.
photo by Alexander Pavsky/Kazinform
As of 2024, there’s still 3.2 trillion tenge in cash circulating in the economy. Why? Because not everyone trusts digital systems, not every village has stable internet, and for many, physical cash means peace of mind.
The National Bank gets it. That’s why, even as Kazakhstan rolls out digital payment systems and central bank digital currency, it’s also making sure cash stays accessible — especially in rural areas and for vulnerable groups.
And it’s not just a Kazakh thing. Even in tech-heavy countries like Germany, Japan, and Singapore, cash continues to play a role.
What Does It All Mean for You?
- If you're in your 30s or 40s, you’re not just a future retiree — you’re an investor. Your future pension depends on today’s contributions.
- If you're closer to retirement, the state still has your back — solidarity and basic pensions are still there.
- If you’re an employer, contributing to your workers’ pensions isn’t optional — it’s the law.
- And if you’re someone who just prefers cash, no worries — your money’s not going anywhere (yet).
Kazakhstan Is Moving in the Right Direction — But It Needs a Steady Hand
This edition of the Economic Review isn’t just data. It’s a compass — pointing to where Kazakhstan is going, and what still needs work.
The pension system? Stronger than ever — but still evolving. Oil dependency? Fading, but far from gone. Cash? Not dead, just sharing space with digital tools.
Kazakhstan stands at a moment of transformation. It’s not easy. But it’s hopeful. And most importantly — it’s ours to shape.
