We all have dreams for our retirement and believe we have long years ahead of us to make them come true.
To achieve our retirement vision, we spend on average 25 years of our lives working, though this period stretches up to 40 years in developed European countries and has been extending in Turkey’s case as well.
This notwithstanding, mapping out your retirement plan and realizing your dreams is now very easy.
Private Pension System is here to make your dreams come true; and to enable you to enjoy the living standards to which you are accustomed, in your retirement as well.
How Does the System Work?
Private Pension System, which is supplementary in nature to current social security systems, is envisioned to generate additional income to participants during retirement, thereby enabling them to achieve comfortable living standards in this period.
To participate in this system, individuals make specified contributions on a voluntary basis in the framework of a pension contract. Participants become entitled to retirement after having remained for at least 10 years within this system, in addition to having reached the age of 56.
In this period, with a State Contribution advantage that is unparalleled by any other investment instrument, an amount corresponding to 25% of all contributions deposited in the system is added to participants’ accounts as State Contribution. Within a calendar year, State Contributions worth up to 25% of annual gross minimum wages are attainable.
Entitlement to state contribution and earnings varies on the basis of duration of participation in the system, and is
- 15% for a presence of at least 3 years in the system;
- 35% for at least 6 years;
- 60% for at least 10 years;
- 100% for 10 years in the system, in addition to having completed 56 years of age.
You may invest your savings in Private Pension Funds through the Private Pension Scheme.
Savings within the System are invested in pension mutual funds established by pension companies, in compliance with relevant Capital Markets Board regulations by which they are governed, commensurate with each individual’s risk-return profile.
Private Pension Mutual Funds are authorised to invest in cash and time deposits, borrowing instruments including reverse repo, stocks, assets based on precious metals and real estate, futures and options, stock exchange money market transactions, mutual funds and other financial instruments deemed appropriate by the Capital Markets Board.
Anyone who has completed 18 years of age and that has the capacity to exercise civil rights may participate in the Private Pension System.