Those who retire before 2025 will receive 30 percent higher pensions: What should be considered for retirement?

According to the work of social security experts in Turkey, retiring before January 1, 2025, under the current pension system could ensure your pension is 30 percent higher. Experts state that while those who retire in 2025 will receive a higher retirement bonus, their monthly pensions will be nearly one-third lower. This situation, which must be considered when making a retirement decision, is causing employees who are eligible for retirement to decide to retire before 2025.

Following the announcement of inflation data by TÜİK, discussions regarding retirement have begun to increase. Inflation, which is expected to be between 37 and 42 percent, is also expected to affect retirement decisions. Inflation data is used when calculating retirement pensions.

According to a report by Hüseyin Gökçe from the Ekonomim news site, employees who are eligible for retirement and would receive 30 percent less if they retired after 2025 are not postponing their retirement decisions. This situation could lead to a rapid increase in the number of retirees in Turkey as the country enters the final quarter of 2024.

WHY WILL THOSE WHO RETIRE AFTER 2025 RECEIVE LESS PENSION?

A very complex system is used to calculate retirement pensions in Turkey. In the pension calculation system, where numerous factors are taken into account, the effect of inflation is also quite significant.

According to the forecasts of the Central Bank and TÜİK, inflation is expected to decrease gradually in the coming years. The expectations of markets and economic experts also generally appear to be in line with the Central Bank and TÜİK. In this case, pensions will be affected by a lower inflation coefficient each year as inflation decreases. As a result, the pensions received by those who retire later will be lower than those who retired in previous years.

On the other hand, individuals who work for a longer period will be entitled to receive a higher retirement bonus compared to those who retire early.

News Source: 12punto