Istanbul Gelisim University IISBF SosyoCom: Monthly Events and News Bulletin (Issue: 10, October 2021)  

Abstract

The Most Enticing Saving System: Private Pension

Asst. Prof. Bülent İLHAN The Department of Economics and Finance

The Private Pension System (BES) entered into force on October 7, 2001, with the law numbered 4632 in our country, the first contracts were made on October 27, 2003. The number of pension companies, which was 11 at the beginning, is now 20. As of August 2021, the total savings in the system are 152 billion TL, and the number of participants is approximately 6.9 million people. The average savings per person is 22,000 TL. The point reached within these 18 years is far behind where it should be. However, while the ratio of private pension savings to national income in OECD countries is 49.5% on average, it is 2.5% in our country. Turkey-specific reasons for this (as per my contentions) can be listed as follows: