Scandalous pension defense from the head of the Social Security Institution: 'Retirees are living longer!'
Explaining why pensions are low, Social Security Institution (SGK) President Raci Kaya said, "We used to die at 50; today, retirees are collecting pensions until they are 78."
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Social Security Institution (SGK) President Raci Kaya made a remarkable assessment while explaining the reasons for low pension payments. Kaya stated that the number of retirees has increased in Turkey due to the development of healthcare services and increased life expectancy. Kaya emphasized that the rise in life expectancy has increased costs, noting that people are now receiving pension payments for a longer period compared to the past.
"WE USED TO DIE AT 50"
The SGK President said, "In the past, people talked about 'retirement in the grave' because we were dying at 50-55. Today, we have reached an average age of 78. As of 2023, our number of retirees has increased by 3 million due to the EYT (Retirement Age Compensation) regulation." Kaya stated that with the increase in health and welfare levels in Turkey, life expectancy has approached the European Union (EU) average. Kaya pointed out that the average duration of premiums paid to the SGK in Turkey is 20 years, whereas this period is much longer in EU countries.
"THE NUMBER OF RETIREES IS INCREASING RAPIDLY"
The SGK President stated that labor force participation in Turkey is slowing down and the population is aging. Kaya said, "For us to sustain the system, more people need to participate in employment. However, while we were saying 10 million people would join the workforce within 10 years, the number of retirees is increasing rapidly." Kaya noted that the average retirement age in Turkey is 48, while this age is 65 in EU countries.
SUPPORT IS PROVIDED TO EMPLOYERS
Raci Kaya also emphasized that employing workers in Turkey is more costly for employers. Kaya argued that support for employers is higher elsewhere, stating, "The burden on the employer is 22 percent in OECD countries, while it is 22.75 percent for us. With a 5 percent support, we reduce this burden to 17.5 percent. However, in the EU and America, this burden is 17 percent even with support."