What are the advantages of the system?
The income of the retired is lower than that of the working: this is the case everywhere in the world. Therefore, an additional income is required if an individual is to keep the lifestyle to which they are accustomed to. Participation in the Private Pension System can provide that additional income for you. Once you wish to exercise your entitlement to retirement, you may claim your savings either wholly or partially.
Given the fact that you will want to cover your cash needs and maintain your lifestyle throughout your retirement, it would be wise and best serve your interests to make long-term savings.
The Private Pension System enables you to save the contributions you deposit monthly, quarterly, biannually or annually until you retire. In the event that you should experience any financial troubles, you may suspend your contribution payments; modify the amount of your contribution or even change the pension company until you stabilize your financial standing again.
Various Investment Instruments/ Professional Fund Management
In the Private Pension System; the contributions you deposit are invested in pension investment funds. The pension investment funds invest in various securities on the financial markets. Specialized portfolio management companies invest such funds in the most suitable fashion to address your needs and expectations.
You may select the funds in which your savings are to be invested under the contract signed upon entering the Private Pension System. Hence, not only are your funds managed by professional fund managers, but you can also make savings in different pension funds even when the amounts deposited are nominal.
Supporter of the Social Security Institutions
You can make savings within the Private Pension System throughout your working life with regards to whether you are registered to the Social Security Organization for Artisans and the Self-Employed (Bağ-Kur), the Retirement Fund (Emekli Sandığı) or to the Social Security Institution (SSK). Once you retire, the revenue received from the Private Pension System in addition to the pay you will receive from the said entities will provide you with a long and prosperous retirement period; one throughout which you will be able to “stand on your own feet.”