On July 12, 2022, the President of Kazakhstan signed a new law representing one of the innovations for the population – the unification of pension savings of a married couple or close relatives. Thus, the contract of a joint, or as it is also called, marital pension annuity has become more accessible to citizens.

Who and how can use it and how the incomes of the parties prescribed in the contract will be redistributed, read below.

A joint pension annuity for married couples and close relatives is a new insurance product that provides an opportunity for close relatives or spouses to combine their savings and receive lifetime payments without waiting for an official release to a well-deserved rest. Married couples can use this product if one spouse does not have enough pension savings to buy a pension annuity, and the second has a surplus.

Recall that the retirement age in the Republic of Kazakhstan for men comes at 63 years, for women in 2022 - at 60.5 years and will increase every year for 6 months until 2027, until it reaches 63 years. But you can not wait for the retirement age and get a pension annuity. However, to do this, you need to have a sufficient amount of savings in the UAPF. This amount varies depending on the gender and age of the depositor. Men can start receiving pension annuity payments from an insurance company from the age of 55, and women in 2022 – from 52.5 years.

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 the insurance market and securities market, banking", which introduced the product of a joint pension annuity, will be put into effect after 60 calendar days from the date of the first official publication, that is, in September 2022.

How can a husband and wife purchase a marital pension annuity?

Let's analyze the advantages of a joint pension annuity by example.

A married couple, a 55-year-old husband and wife, have pension savings of 10 million tenge and 8 million tenge, respectively. At the same time, the minimum cost of a pension annuity with a monthly payment of 70% of the subsistence minimum (26,173 tenge in 2022) for a husband is 7.4 million tenge, for a wife – 9.2 million tenge. In this example, the amount of the wife's savings is insufficient to conclude an individual pension annuity agreement.

By combining savings and concluding a joint pension annuity agreement with an insurance premium of 18 million tenge, each of the spouses will be able to receive lifetime monthly payments in the amount of 28,430 tenge, taking into account the annual indexation of subsequent payments.

When concluding a joint pension annuity agreement, personal terms of the agreement are determined for each insured, including the amount and schedule of personal payments, which will be valid regardless of the death of one of the insured.

Thus, in the event of the death of one of the spouses, the second will continue to receive their personal payments according to the schedule, according to the contract. If the annuity contract provided for a guaranteed period of insurance payments, then, in the event of the death of one or both spouses, the heirs will receive payments according to the schedule during the guaranteed period.

Benefits of a retirement annuity:

– If one of the spouses does not have enough pension savings to buy an annuity from an insurance company, and the second person has an excess balance, then with a marital pension annuity, it is possible to provide both representatives of the couple with lifetime payments;

– If a person has sufficiently large pension savings, he can purchase a joint annuity with someone close to him, for example, with a sister or brother. This annuity will provide lifetime payments to a close relative who does not have large savings.

– In the event of the death of a husband or wife, or a close relative, the second party to the contract will continue to receive payments from the insurer.

Who can be considered a close relative?

According to the Code of the Republic of Kazakhstan "On Marriage (Matrimony) and Family", parents, children, including adopted ones, as well as brothers and sisters, including those with only one parent, grandfather, grandmother, grandchildren are considered close relatives.

How is the process of registration of a joint pension annuity?

Taking into account all the nuances of the new insurance product, you decided to combine pension savings with your close relative or spouse.

To do this, you need:

– carefully study the websites of life insurance companies offering this service;

– choose your insurer;

– analyze the reviews of other customers.

An insurance company offering to conclude a joint pension annuity agreement must check the availability of a license from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market. This can be done on the Internet resource of the financial regulator www.gov.kz . Before signing the contract, carefully study its points. By signing the contract, you automatically agree to all its terms. The contract is concluded in three copies: for the depositor, the insurance company and the UAPF. It is necessary to notify the UAPF of the conclusion of the pension annuity agreement within 10 calendar days from the date of its conclusion, and it will transfer all funds to the insurance company. This amount will be called an insurance premium. That is, it is more correct to say that now you and your spouse or a close relative will receive not a pension, but an insurance payment. The insurance company will now manage the insurance premium by investing in financial instruments. If you want to change the insurance company, and you have the right to do so by law, you will be able to do it only two years after the conclusion of the contract.

Postfactum.kz from Fingramota.kz