Concerns over pension gap: Regulation shelved
While it was expected that the pensions of those who file for retirement in 2024 would be lower than those retiring in 2025, it has been reported that the economic management has shelved the regulation. AKP Group Chairman Abdullah Güler announced this development, which has increased the concerns of retirees, by stating that the old pension calculation rates will continue.
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Expectations for a regulation to prevent a decrease in the pensions of insured individuals who will file for retirement in 2024 have been dashed as the economic management has shelved this effort. The latest statements by AKP Group Chairman Abdullah Güler have increased the concerns of retirees. According to a report by Hacer Boyacıoğlu from Hürriyet Newspaper, it is projected that the pensions of those retiring in 2024 will be at least 30% higher than those of retirees in 2025. This situation stems from the calculation formula used for pension payments.
CALCULATION OF PENSIONS
Pensions are updated based on the previous year's inflation data. Due to the low inflation expected in 2024, it is anticipated that pensions will be set higher compared to those in 2025. This development is causing some retirees to consider filing their retirement applications before the end of the year. However, it was believed that the government needed to find a solution to this situation.
EXPECTATION OF LEGAL REGULATION
There was talk in political circles that a legal regulation would be enacted for 2024 to prevent losses for those who will retire in 2025. However, the recent change in economic management has led to these plans being shelved. The economic bureaucracy argues that ad-hoc regulations harm the system and that the integrity of the system must be preserved.
RETIREES' PROBLEMS AND EXPECTATIONS FOR SOLUTIONS
The living standards of retirees are under threat due to rising inflation and the high cost of living in recent years. Many retirees struggling to make ends meet after retirement complain that their pensions are insufficient. Experts emphasize that injustices in the pension system must be addressed and a more sustainable structure must be created.
In his latest statement, Abdullah Güler said, "The pension calculation rates and procedures from previous years are continuing in the same way," indicating that there is no new regulation. How the gap between 2024 and 2025 will be managed remains uncertain. Regulations to be made by the end of the year will play a critical role in determining the living standards of retirees. However, the budget negotiations starting after October 17 may further restrict the timing of this process.
A solution is expected so that the uncertainties experienced by retirees can end and they can receive the fair pensions they deserve.