New regulation coming for retirement age!

Vice President Cevdet Yılmaz will make a presentation today (October 17) at the TBMM Plan and Budget Committee regarding the Twelfth Development Plan, which sets out Turkey's goals for the 2024-2028 period.

With the implementation of the plan, it is targeted that the gross domestic product (GDP) growth will average 5 percent annually, that per capita income will reach 17 thousand 554 dollars in 2028, and that the national income per capita in terms of purchasing power parity (PPP) will exceed 58 thousand dollars.

According to information reported by Habertürk, if the targets are met, exports will reach 375.4 billion dollars and imports will reach 481.4 billion dollars at the end of the five-year period. With the targeted increase in tourism revenue, the ratio of the current account deficit to national income will be 0.2 percent at the end of the period.

FLOATING EXCHANGE RATE SYSTEM TO CONTINUE

In the plan, which states that the Central Bank will continue its tightening policy to reach its single-digit inflation target, it was reported that the floating exchange rate regime will be maintained and that financial stability will be ensured to support the economy in a way that observes price stability.

PENSION CALCULATION SYSTEM IS COMING

In line with the new plan, regulations that encourage individuals to remain in employment and prioritize fairness and actuarial balance will be implemented. The pension calculation system will be reorganized in a way that encourages individuals to stay in employment longer and does not impose a financial burden.

NEW REGULATION ON RETIREMENT AGE

In order to ensure the financial sustainability of the social security system, studies will be conducted on automatic adjustment mechanisms compatible with the increase in life expectancy at birth in determining retirement criteria.

ELDERLY CARE INSURANCE IS BEING ESTABLISHED

To reduce the effects of an aging population on the social security system, care insurance and vocational rehabilitation practices will be implemented. Care insurance will be established for the financing of elderly care services.

RETURN TO WORK FOR DISABILITY PENSIONERS WILL BE ENCOURAGED

Vocational rehabilitation practices will be implemented for individuals receiving permanent incapacity income or disability pensions to return to the labor market.

SUPPLEMENTARY PENSION SYSTEM

The social security system will be supported by supplementary pension and health systems to increase retiree welfare and provide individuals with additional health coverage. Supplementary health insurance will be encouraged to strengthen the sustainability of the General Health Insurance system, provide individuals with alternative health coverage, and ensure the effective use of capacity in health service delivery.

OKS WILL BE TRANSFORMED INTO A SUPPLEMENTARY PENSION SYSTEM

The Private Pension System (BES) will be made more attractive to increase the fund amount and the number of participants, and the Automatic Enrollment System (OKS) will be developed to include employer contributions and fund diversity will be provided. A supplementary pension system will be established in which OKS will be transformed into a second-pillar pension system that also includes employer contributions. Fund diversity in OKS will be increased to take into account the different risk perceptions and preferences of participants.

LONG-TERM CARE INSTEAD OF LUMP-SUM PAYMENT IN BES

The deductions made in BES will be simplified and reduced. The funds of BES participants who meet the age and year requirements will be optionally converted into long-term care coverage within the scope of the insurance product to be introduced during the Plan period.

Practices will be implemented to encourage students under the age of 25 enrolled in higher education institutions to participate in and remain in the BES. As with OKS, individuals retiring from BES will be encouraged to receive their savings in the form of programmed withdrawals or annuity insurance rather than as a lump sum.