Pension Savings Withdrawal Becomes Harder: How Will the New Thresholds Affect Savers?

From now on, early withdrawal of pension savings from the fund will become significantly more difficult. According to new data published on June 6, the sufficiency thresholds have increased from 79% to 120% depending on the contributor's age. The most striking news is that for citizens over the age of 42, this indicator has surged by more than two times at once.

Percentage Increase of the Minimum Sufficiency Threshold by Age

 20 years old - 79.3%

 21 years old - 80.78%

 22 years old - 81.7%

 23 years old - 83.01%

 24 years old - 84.04%

 25 years old - 85.65%

 26 years old - 86.75%

 27 years old - 87.39%

 28 years old - 88.59%

 29 years old - 89.54%

 30 years old - 90.43%

 31 years old - 91.46%

 32 years old - 92.44%

 33 years old - 93.54%

 34 years old - 94.24%

 35 years old - 95.08%

 36 years old - 95.87%

 37 years old - 96.46%

 38 years old - 97.49%

 39 years old - 98.17%

 40 years old - 98.96%

 41 years old - 99.71%

 42 years old - 100.28%

 43 years old - 100.83%

 44 years old - 101.62%

 45 years old - 102.37%

 46 years old - 102.82%

 47 years old - 103.38%

 48 years old - 104.03%

 49 years old - 104.78%

 50 years old - 105.25%

 51 years old - 105.82%

 52 years old - 106.35%

 53 years old - 106.75%

 54 years old - 107.24%

 55 years old - 107.81%

 56 years old - 108.46%

 57 years old - 108.87%

 58 years old - 109.37%

 59 years old - 109.64%

 60 years old - 110.28%

 61 years old - 115.23%

 62 years old -120.28%

According to the provided data, the lowest increase rate is recorded among 20-year-old contributors (79.3%), while the highest increase level is observed among citizens of pre-retirement age (120.28%).

According to the official statement of the Unified Cumulative Pension Fund (UCPF), this measure stems from the need to maintain future pension payments at an appropriate level. Under the previously used methodology, the future pension of citizens who partially withdrew their savings would amount to only about 15% of the country's median salary. The new calculation approach ensures that this figure reaches up to 40% of the median salary upon retirement.

Although the newly approved rule significantly limits the category of citizens who can utilize their pension savings ahead of schedule, it aims to provide citizens with a stable and decent source of income in old age in accordance with international standards.