TURKISH PENSION SYSTEM: AN OVERVIEW AND A CASE STUDY FOR OLD AGE RETIREMENT BENEFIT

The purpose of this project is to display clearly the reorganization process of the Turkish retirement-income system in the light of the problems of retirement-income system and institutions by the help of worldwide development of private pension schemes and public pension plans. In this paper, Turkish Pension System is analysed and Turkish pension schemes are explicated in the light of established practice of Organization for Economic Cooperation and Development (OECD) countries. This paper takes case study approach which draws on a series of situations of retirement eligible people and focusing on future pension entitlements of individual workers. Old-age benefits under both public and private pension plans are taken as main focus in this paper. Other pension schemes and their benefits to the retirement-income system are mentioned briefly but the rest of the concept is beyond the scope of this project. Pension wealth of elderly persons in Turkey is analysed under some fixed assumptions, for a full career work, by computing the pensions replacement ratio. Pension sector is the key beneficiary of developments in Turkey. Governmental regulations concerning retirement system play crucial role to achieve high level of prosperity in Turkey. Cons and pros of possible scenarios are argued by taking country facts into consideration and some conclusions are drawn from analyses performed in the study and possible improvement options are mentioned.