Turkmen Pensioners Decry Government’s Refusal to Index Payments

The Turkmen government's decision to forgo its customary annual increase in pensions and benefits in 2026 has sparked sharp discontent among elderly citizens. Pensioners, arriving to have their documents updated for the year, have discovered that payment amounts remain unchanged and many are not hiding their anger.  Since January 2, retirees have been visiting social security offices where pension amounts are officially recorded in their books. In previous years, this annual procedure was typically accompanied by an indexation of around 10%, helping to offset inflation and rising prices. That practice has been discontinued. Pension and social benefit levels remain frozen, despite the ongoing increase in living costs. The decision not to index pensions was announced in autumn 2025 during a parliamentary session, where honorary elder Yazmyrat Atamyradov proposed a complete halt to increases in salaries, pensions, state benefits, and scholarships. He claimed the “happy people” of Turkmenistan already enjoy a steadily improving standard of living, making additional financial support unnecessary. The response from the public has been stark. Pensioners are openly criticizing the government and President Serdar Berdimuhamedov, not only in social services offices but also in markets, on public transport, and in other public places. Many older citizens recall a similarly severe decision under the country’s first president, Saparmurat Niyazov, when pensions were abolished entirely. Witnesses from that time report that some elderly individuals, left without support, were pushed to the brink of survival. The current cost-of-living crisis has exacerbated the backlash. Over the past year, food prices have surged. Beef has risen from $17.40-$20.30 to $31.90-$33.40 per kilogram, and local apples have jumped from $4.35 to $7.69 per kilogram. As of January 1, 2025, the minimum pension in Turkmenistan was set at $159.50. That figure remains unchanged in 2026, despite the deepening economic pressures faced by retirees.

Kazakhstan Among Top 30 Countries for Pension System Quality

Kazakhstan has made significant strides in the latest Global Pension Report by international insurance group Allianz, climbing eight positions to rank 26th out of 71 countries. The country now places ahead of China, Turkey, Singapore, Spain, and Indonesia. According to analysts at Ranking.kz, Kazakhstan's rise reflects improvements across several dimensions of its pension system, which is the only one in Central Asia and among the Eurasian Economic Union (EAEU) states to be included in the Allianz ranking. Strong Performance on Global Pension Index The Allianz Pension Index (API), which underpins the ranking, assesses 40 indicators across three sub-indices: sustainability, adequacy, and integrity of pension systems. These include factors such as demographic trends, public debt, living standards, and the financial soundness of pension institutions. Scores range from 1 (best) to 7 (worst). Kazakhstan achieved an overall average score of 3.5, outperforming the global average of 3.7. It received particularly strong marks for sustainability (3.6) and adequacy of payments (3.2), signaling resilience and fairness in pension distribution. By comparison, top-ranked countries include Denmark (2.3), the Netherlands and Sweden (2.6 each), and Japan (2.7). Other leading performers are New Zealand, Israel, Australia, the United Kingdom, Norway, and the United States. At the bottom were Laos, Malaysia, and Sri Lanka, all with scores above 4.6. The Evolution of Kazakhstan’s Pension Model Kazakhstan transitioned from the Soviet-era pay-as-you-go system to a multi-tiered pension model in 1998. The current system combines distributive and accumulative components, with payments derived from three main sources: State budget: Covers solidarity and basic pensions. Mandatory savings: Contributions to the Unified Accumulative Pension Fund (UAPF), including 10% of employees’ salaries and 5% employer contributions for hazardous jobs. Voluntary contributions: Optional payments by individuals or employers. As of January 1, 2024, a new tier, mandatory employer pension contributions (MEP), was introduced. These contributions will gradually increase to 5% of wages by 2028 and apply to citizens born in 1975 or later. Long-Term Trends and Global Context Globally, pension systems are shifting toward accumulation-based models. In 2000, distributive pensions made up more than 65% of total payouts. By 2024, this figure is projected to fall below 50%. Kazakhstan was the first among CIS countries to adopt an accumulative system and is now seen as a regional leader in pension reform. Allianz experts highlight the growing importance of such systems in the face of demographic change. The United Nations projects that by 2050, the global population aged 65 and over will nearly double, from 857 million to 1.58 billion. The dependency ratio is expected to rise to 26 pensioners for every 100 working-age individuals, up from 16 today. To ensure long-term viability, experts argue for a balanced approach that combines state-funded and private accumulative elements. In Kazakhstan, approximately 2.5 million people currently receive pensions.