PRIVATE PENSION SYSTEM

Private Pension System is an advantageous investment system that converts savings into income by planning for the future today. Payments to private pension plans are completely independent from payments made to social security institutions.

The Pension System is based on voluntary participation. Contributions are directed to investment through pension funds that enable participants to sustain their living standards in the future. The participant is eligible for retirement at the age of 56 after having stayed in the system at least for 10 years.

Private pension is a flexible and advantageous system that offers the below mentioned rights and privileges to the participants:

  • The system allows the participant to determine the amount of the contribution (provided that the amount is not below the designated minimum contribution) and to increase this amount at any time.
  • The participant is free to determine the pension funds through which his/her contributions and savings are to be directed to investment.
  • The participant has the right to change fund allocation rates at most six times a year and the pension plan at most four times a year.
  • The participant has the right to suspend paying contribution. Within this period, his/her savings will continue to be invested in pension funds. And the participant may begin contribution payments at any convenient time again.
  • The participant benefits from the tax advantages offered by the system.
  • All savings and rights can be transferred to another pension company provided that the participant has paid contributions at one company for one full year.
  • The participant may leave the system at any time. He/she may choose the retirement savings to be paid back in a lump sum or as regular income.