What is the Private Pension?
Designed to provide you with an additional income in your retirement, the Private Pension System is a savings and investment system that helps you the maintain the living standards that you enjoyed during your working years.
The system is voluntary and is not an alternative to the state social security system – it is a retirement system that provides a supplementary income.
The Private Pension System ensures payment of a lump-sum or a monthly pension benefit in retirement by investing a portion of the income that you earn during your active working years.
The savings you accumulate in the Private Pension System are channeled to the pension funds of your choice and managed by professional portfolio managers.
The savings you collect in this system are dependent upon the amounts you regularly deposit into your pension accounts, as well as the length of time you contribute to the system.
Furthermore, effective January 1, 2013, a 25 percent state contribution was instituted. There is no other savings instrument which allows contributors to economize in a regular and consistent manner with the support of state contribution. Effective from the above date, for every 100 Turkish lira you add to your savings in the system the government will deposit 25 Turkish lira into a sub-account opened in your name.