Retirement Conditions in Turkey and Second Retirement Privileges with BES
Retirement conditions in Turkey, which vary depending on the insurance start date, and details on creating a secondary income through the Private Pension System.
In addition to retirement conditions determined by the insurance start date in Turkey, the Private Pension System (BES) offers employees and retirees the opportunity to obtain a second retirement income.
Conditions According to Insurance Date
Retirement conditions in Turkey vary depending on the starting date of insurance. For those insured between 1999 and 2008 under the SSK (Social Insurance Institution), the requirement is 7,000 days of premium payments, alongside an age limit of 58 for women and 60 for men.
For insurance entries after 2008, the premium requirement for SSK rises to 7,200 days, while the age requirement increases up to 61 for men. Under Bağ-Kur, it is mandatory to pay 9,000 days of premiums for both men and women.
Second Retirement Outside of SGK
Employees can also be included in a complementary retirement system while maintaining their insurance within the SGK system. In this way, a second retirement income can be created through BES alongside the pension to be received from SGK.
The BES and Automatic Enrollment System allow not only employees but also individuals not currently in the working life to save money. The Complementary Retirement System planned for implementation in the future is expected to offer a similar structure.
BES Conditions and Age Requirement
To earn the right to retirement in BES, it is necessary to stay in the system for at least 10 years and complete the age of 56. This situation can offer an early retirement opportunity with a schedule different from SGK conditions.
For example, while a male employee who entered the SGK system in the year 2000 retires later according to SGK conditions, if he started BES in the same period, he can achieve retirement from BES by completing the 10-year and 56-age conditions.
Contribution Pay and State Support
The participant entirely determines the amount of the contribution pay to be deposited in BES. The contribution pay determined according to the monthly budget can be increased in the following process, and a state contribution is added to the paid amounts.
According to the given example, a state contribution of 200 liras is added to the account of a participant paying 1,000 liras per month. Savings are evaluated in preferred retirement funds.
OKS and New System Draft
In the Automatic Enrollment System, a deduction of at least 3 percent is made every month from the wages of employees to create retirement savings. Employees also have the right to opt out of this system.
In the Complementary Retirement System, a model similar to OKS is expected to be implemented. In this system, alongside employee contributions, state and employer contributions are also projected to be included.
Use of Savings
When the right to retirement is achieved in BES, the participant decides how the savings will be used. The accumulated principal and state contribution can be received in a lump sum.
Participants who wish can choose to evaluate these amounts as regular payments over a certain period instead of taking them as a lump sum.