Pensions in Turkey can be public or private. Article 60 of the 1982 Turkish constitution (similar to Article 48 of the 1961 constitution) states that "Everyone has the right to social security and the State shall take the necessary measures and establish the organization for the provision of social security."

History

Until May 2006, there were three separate social security institutions: SSK, for private and public sector workers; Emekli Sandiği (ES), for civil servants; and Bağ-Kur, for self-employed workers and farmers. In 2006 these were all merged into one institution, the Sosyal Güvenlik Kurumu (Social Security Institution, SGK).Brook, A. and E. R. Whitehouse (2006), "The Turkish Pension System: Further Reforms to Help Solve the Informality Problem",

OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...

Social, Employment and Migration Working Papers , No. 44, OECD Publishing.

Current system

The state pension system is administered by the Sosyal Güvenlik Kurumu (Social Security Institution, SGK), which collects insurance contributions from employees and their employers, at the rate of 9% from employees and 11% from employers. Once someone who paid contributions to the SGK for the required amount of time reaches retirement age, they become eligible for an SGK pension, with the size of their pension determined by the amount of contributions they paid. In addition to SGK pensions, people can use the private pension system by paying additional contributions into private pension funds administered by insurance companies. The private pension system is regulated by law. There is also a separate pension fund,

OYAK Ordu Yardımlaşma Kurumu (OYAK) (''lit. Military Mutual Aid Institution''), is a Turkish charity and pension fund with around 363,000 members and owner of Renault (Oyak). The OYAK Holding Investment Subsidiary Group is one of the largest industr ...

, for members of the

Turkish Armed Forces The Turkish Armed Forces (TAF; tr, Türk Silahlı Kuvvetleri, TSK) are the military forces of the Republic of Turkey. Turkish Armed Forces consist of the General Staff, the Land Forces, the Naval Forces and the Air Forces. The current Chi ...

. Individual Pension System (BES), is actively promoted by the government. Until 2013, tax refunds were issued up to 30% of the contributions. After 2013, government started to contribute with %25 of paid contributions. These government contributions can be earned under special terms (after some years and age). In 2017, government introduced Automatic BES, which certain employees joined the system automatically with 3% of their salaries. They had the option to leave the system. In September 2020, President Erdoğan announced BES funds can be used for credit purposes.

References

{{Europe topic, Pensions in

Turkey Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...

Financial services in Turkey Social security in Turkey