The background of this study lies in the fact that since 1998 Kazakhstan started the pension reform which continues at the present stage. In this connection it is important to understand the essence of institutional pension reform, to determine current principles of pension and immediate prospects for development of this institution. The authors try to identify a theory or model that most adequately assess the recent changes in the pension system and predicts future direction of evolution of the social process. The chronological scope of the study covers the period from 1998 to 2016. The paper is structured in the following areas: isolated and studied the main directions of the pension reform; defined areas for further development of the institution of pensions. Methodological framework of the study is, first of all, theoretical position of general scientific systematization of complex processes (in this case, social), as well as the idea of interconnectedness and interdependence of social, economic, legal and other factors that determine development of the pension system. General scientific principles used by the authors in this paper include such methods as analysis and synthesis, induction and deduction, structural, historical and logical methods. The following main results should be emphasized: the authors have developed classification of the causes and conditions of the pension reform start; defined the concept of pension system development mechanism; prospects of the pension system development. The practical significance of the study is that its findings can be used for further exploring of the social processes which take place in Kazakhstan. The materials of the study can be used in educational process (in general and special courses for lawyers, economists) and also in writing of textbooks and monographs.

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