Participation of Individuals Under the Age of 18 to the Private Pension System Strengthens the System

As of April 19, the total fund size in the Private Pension System was 464.8 billion liras, while the total number of people rose to more than 14 million 903 thousand.
The activity in the private pension system continues due to the earthquakes, the Kovid-19 epidemic and the future anxiety caused by the economic crisis, and the legal arrangements made in the system, especially in the last 2 years.
According to the data of the Pension Monitoring Center (EGM) dated April 19, 2023, compared to the end of 2022, the number of voluntary net participants in the Private Pension System increased by 272 thousand 731 people and became 8 million 72 thousand 704, while the number of funds including state contribution was 429.2 billion TL. While the number of personnel in the Automatic Private Pension System was 6 million 830 thousand 421 with an increase of 113 thousand 951 people, the fund amount was 35.6 billion liras.
It is seen that the reason for this increase in the Private Pension system is the application (BES with children), which was launched in June 2021 and aims to include children under the age of 18 in the voluntary Individual Pension System.
In the statement made by Atilla Benli, the President of the Insurance Association of Turkey (TSB), it was stated that the Private Pension System contracts can be used as collateral (a contract for the transfer of receivables) when using a loan from the bank and that the relevant legal regulation has been made and published in the Official Gazette.
It was stated that with this application, which will start at the end of September 2023, the participants in the system will be able to meet their financing needs at an affordable cost without changing their BES, and this will have positive contributions to the system.