Minister Işıkhan makes statement on pension salary difference
It is stated that the salary difference between those who will file for retirement in 2024 and those who will apply in 2025 could reach up to 30 percent. Minister of Labor and Social Security Vedat Işıkhan announced that this difference will not change.
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Significant salary differences will emerge between those who apply for retirement in 2024 and those who file their petitions in 2025. The pensions of those who retire in 2025 will be 30 percent lower compared to those who retired in 2024.
The pensions of those who submit their retirement petitions this year will be calculated based on the 4.5 percent growth rate at the end of 2023, the 64.77 percent inflation rate, and the 86.16 percent raise granted to retirees. Those who submit their petitions in 2025 will receive a pension calculated based on the lower growth rate of 2024 and the year-end inflation figure expected to be around 44 percent.
With these rates, those who retire in 2024 will benefit from a total pension increase of 86.16 percent. Everyone who retires between January 1 and December 31, 2024, will be able to benefit from this raise.
Experts recommend that those who are set to become SSK and Bağ-Kur retirees complete their retirement applications before leaving them for 2025. Otherwise, those who retire in 2025 may face lower pensions.
WILL THE 2024-2025 PENSION RAISE DIFFERENCE BE CLOSED?
According to a report by Türkiye Gazetesi, Minister of Labor and Social Security Vedat Işıkhan stated during a presentation at the AK Party that the difference regarding those who apply for retirement in the final month of 2024 and in 2025 will not change.
Explaining the reasons for the difference in pension amounts between 2024 and 2025, Işıkhan said, "Especially in inflationary periods, providing monthly increases above the CPI breaks the link between the update coefficient and monthly increases. This causes significant differences in the pensions received by those who retire in the current year versus those who retire in the following year."
"Pension amounts were increased by 49.25 percent in January 2024 and by 24.73 percent in July. The total annual increase for 2024 was 86.16 percent," Işıkhan stated, adding the following:
"Everyone who applies for retirement between January 1 and December 31, 2024, will benefit from these raises. In 2025, assuming past year premiums, a 2024 CPI rate of 45 percent, and a growth rate of 6 percent, the update coefficient for 2024 will be 46.8 percent. Premiums will be updated with this rate, and a difference of approximately 40 points will emerge between the 2024 monthly increase and the update coefficient. This situation will cause a difference of approximately 30 percent in the pensions of SSK and Bağ-Kur members who do not retire this year and leave it for next year."