Politician purchases residence utilizing retirementfunds
In a significant development, a resident of Shymkent, Kazakhstan, has become the first citizen to purchase a home using pension savings. This trend of using pension savings for housing and medical expenses has been on the rise in Kazakhstan, with over 4.33 trillion tenge spent on these purposes by early 2025[1][2].
However, depositors of the Unified Accumulative Pension Fund (EPF) in northern Kazakhstan have faced challenges in utilizing these savings effectively for housing. The housing market in Kazakhstan, particularly in major cities like Astana, has experienced a slowdown, which could make it difficult for pension savers in the north to buy property[3].
Moreover, high inflation (around 11.3% as of May 2025) and a restrictive monetary policy with a high key interest rate (16.5%) have impacted the cost of housing finance or mortgages, further complicating depositors' ability to maximize their pension savings for home purchase[4].
The regulatory environment for EPF usage may also have comparable complexities, although more detailed local data is needed to specify the exact regional challenges[5].
Despite these challenges, the Shymkent resident managed to take advantage of a bonus offer that reduces the mortgage interest rate. The reduction will take effect after three years of savings by the resident[6]. The resident learned about the opportunity to use pension savings for housing purchase from social media and submitted an application to use pension funds the day after the online platform was launched[7].
The apartment purchased by the resident was bought under a share participation agreement[8]. The resident received the lump-sum pension payment to a special account and will receive a reduction in the mortgage interest rate to 5% after three years of savings[9].
This groundbreaking purchase serves as a testament to the growing trend of using pension savings for housing and highlights the potential benefits for those who are able to navigate the challenges in the housing market.
Sources: [1] Kazakhstan Invest [2] The Astana Times [3] The Astana Times [4] The Astana Times [5] World Bank Group [6] The Astana Times [7] The Astana Times [8] The Astana Times [9] The Astana Times
- The Shymkent resident successfully utilized their pension savings, demonstrating a strategy that could be applied in personal-finance for housing purchases, by taking advantage of a mortgage interest reduction offer.
- The high key interest rates and inflation in Kazakhstan have made investing in real-estate challenging, as they impact the cost of housing-market finance, making it difficult for depositors to maximize their pension savings for home purchase.
- Despite regional complexities in the regulatory environment for Unified Accumulative Pension Fund (EPF) usage, the growing trend of using pension savings for housing purchases can potentially offer significant advantages, as demonstrated by the Shymkent resident's successful home purchase.
