Private Pension System; is a personal future investment system that allows individuals to regularly save for their retirement. It is enacted by the law and supported by the government through state contributions, complementing the state social security system.
Any Turkish citizen with a legal capacity can participate in the system.
To be eligible for the retirement benefits, you must remain in the system for a minimum of 10 years and you must turn 56.
In the event of terminating your contract by withdrawing your savings, the following income tax amounts are deducted based on the investment income you have earned and the length of time you spent in the system.
|Before completing 10 years||15%|
|At 10 years, before turning 56||10%|
|At 10 years and at age 56||5%|
When Investing Your Savings: No tax or withholding tax is applied on the fund income that has been earned for you in the system.
The government pays a 25-percent Government Contribution for each contribution amount paid by all participants (with the exception of employer group retirement plan participants).
The contribution amount that will be paid by the government on behalf of the participants cannot exceed 25 percent of the annual gross minimum wage.