Yurtiçi Tasarruflar ve Bireysel Emeklilik Sistemi: Türkiye’deki Uygulamaya İlişkin Bir Değerlendirme (Domestic Savings and Private Pension System: An Evaluation of the Turkish Case)

Yurtiçi Tasarruflar ve Bireysel Emeklilik Sistemi: Türkiye’deki Uygulamaya İlişkin Bir Değerlendirme (Domestic Savings and Private Pension System: An Evaluation of the Turkish Case)

Title : Domestic Savings and Private Pension System: An Evaluation of the Turkish Case
Number : 13/04
Author(s) : Özgür Özel, Cihan Yalçın
Language : Turkish
Date : February 2013
Abstract : Domestic savings rate in Turkey has exhibited a sharp drop in recent years. This has led to an enlargement in saving-investment gap or the current account deficit. As a result, existing private pension system (PPS) was revised in mid-2012 in order to encourage household savings and thus reduce this gap. The revised system is aimed to enlarge pensioners’ base and simplify the benefit mechanism. Developing countries have been introducing predominantly mandatory private pension schemes through reforms in social security system since 1980’s. Econometric estimations suggest that the abovementioned reforms, though with a lag, may lead to an increase in saving rates up to about 1.5 percentage points . Since PPS in Turkey is based on volunteer contributions and private pension companies currently charge very high management fees, the new reform is expected to have only limited impact on saving rates in Turkey. Projections suggest that based on current management fees, participants may prefer not to join the system and instead invest their personal funds outside the PPS. Initiations to reduce management fees are crucial for the viability of the reform.
Keywords : Social security systems, Domestic savings, Private pension system in Turkey
JEL Codes : E21; G23; H55

 

Yurtiçi Tasarruflar ve Bireysel Emeklilik Sistemi: Türkiye’deki Uygulamaya İlişkin Bir Değerlendirme (Domestic Savings and Private Pension System: An Evaluation of the Turkish Case)
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