Do not make this mistake! Your retirement could be delayed by 10 years

Changes in the social security system and personal errors are forcing many employees to retire much later than they had planned. In particular, failing to correctly evaluate birth-related debt buybacks, the choice between Bağ-Kur and SSK status, and insurance entry dates can lead to years of unnecessary premium payments.

Social Security Expert Özgür Erdursun addressed common mistakes in retirement goals in statements made via social media. Pointing out that many citizens are seeking solutions while waiting for gradual retirement outside the scope of the EYT (Retirement with Age of Transition) regulation, Erdursun explained with individual examples how incorrect applications can lead to a loss of both time and money.

In one example, a female employee born in 1987 who became insured in 2006 was highlighted. This person has a total of 4,897 premium days, consisting of 2,863 days as a 4A insured worker and 2,034 days under a bank pension fund. The female employee had requested a 360-day birth-related debt buyback but could not clarify the reason for it.

According to Erdursun, an employee in this situation will already be able to retire when she reaches the age of 58, which is in 2045. Emphasizing that she can obtain this right with 4,897 premium days without needing a birth-related debt buyback, Erdursun pointed out that unnecessary debt buybacks create a financial burden.

THE ISSUE OF 25 YEARS OF PREMIUM PAYMENTS

Furthermore, the commonly misunderstood issue of "25 years of premium payments" was clarified. Erdursun emphasized that 25 years does not mean paying premiums consecutively, but rather that the time elapsed since the initial insurance start date is taken as the basis, reminding that if one were to pay premiums uninterruptedly for 25 years, this would correspond to 9,000 days.

For employees under the Bağ-Kur status, it was noted that if 1,261 days or more of the last 2,520 days of premium payments fall under the scope of Bağ-Kur, retirement conditions will shift from SSK rules to Bağ-Kur rules. This requires a total of 9,000 premium days. For company partners, while paying Bağ-Kur premiums remains mandatory, costs are also rising due to the increase in premiums.

Regarding those waiting for gradual retirement, Erdursun argues that there will be no such regulation in the short term. He states that even if there were a change, the age requirement would not be completely abolished as it was in the EYT, but that certain flexibilities could be introduced. For example, an employee who started in 2006 might still have to wait many years to retire due to a potential reduction in the age limit.

Another important example highlights the loss experienced by a male employee born in 1973. This employee lived for a long time without knowing that his insurance start date was 1990, but realized his initial entry when he checked via e-Devlet in 2018. If he had completed the necessary premium days on time, he could have retired at age 47, in 2019. However, the employee, who currently has 2,835 premium days, would need to pay approximately 507 thousand TL if he wanted to make a birth-related debt buyback for early retirement, while the salary advantage provided by retiring two years early remains below this figure. For this reason, Erdursun stated that a debt buyback is not a logical option in this situation.

Touching on the salary differences between Bağ-Kur and SSK, Erdursun stated that, for example, those who switch to Bağ-Kur after paying their premiums to SSK at the ceiling for a long time may face a lower retirement pension. Pensions for those retiring from Bağ-Kur can be 30-35 percent lower compared to SSK. Therefore, analyzing status planning and insurance duration is of great importance.

Experts recommend that the insurance start date, total premium days, and the status under which one will retire must be checked. Even a small detail can cause a person to work for years longer or pay a significant amount in premiums. It is emphasized that birth-related debt buybacks do not always provide an advantage and that a detailed calculation is essential.