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Kyrgyzstan to increase pensions from October 1

Pensions will be increased in Kyrgyzstan from October 1, the International Day of Older Persons, after which their average size will be 9,354 soms.

The exact amount of the increase depends on the size of the insurance part of each pensioner’s pension. Because that’s what will be indexed. For pensions up to 30,000 soms, it will increase on average by 38 percent, but not less than by 500 soms.

It is not difficult to calculate the expected increase. In Kyrgyzstan, the pension consists of a basic, insurance and accumulated parts.

The first — guaranteed by the state — is granted upon reaching retirement age and having the required length of service — 20/25 years for women and men (if a person has worked less than the specified period, then this amount is reduced in proportion to length of service). Its size was increased to 3,170 soms last year.

The insurance part consists of two parts. The first takes into account the length of service and wages before 1996. The second — after 1996, including all contributions for the period of working activity, average monthly earnings, and the amount of savings. This is the part of the pension that a person has earned. Its size depends on how many insurance deductions were made during your work.

The accumulated part of the pension is formed at the expense of a 2 percent contribution to the personal account of the payer. This component was introduced in 2010 to stimulate the pension system. You can find out its size by contacting the Social Fund. After retirement, a person can immediately withdraw the accumulated amount or split it into several years and receive it along with the pension.