Is It Possible to Retire Without Working? Retirement, in its simplest definition, is the payment of social security contributions during one’s working life so that in old age those contributions provide a pension. One of the most common questions is whether it is possible to retire without working.
Possibility of Retiring Without Working
The basic requirement for retirement is that contributions are paid in the individual’s name. These contributions, deposited with the Social Security Institution (SGK), allow a person who meets the necessary time and age conditions to receive an old-age pension. The core idea behind retirement is that, as people age they may experience physical changes and a loss of work capacity, so they can cover their living expenses with a pension. In addition to contribution payments, age and insured service periods are also required to qualify for retirement.
For those who do not work or have paused their employment for various reasons, there is the option of voluntary insurance to complete missing contribution days. In other words, individuals who are not covered by mandatory employment—such as homemakers, students, or those working only part-time—can continue their social security by making voluntary contributions and thus complete the days needed to retire.
Who Can Retire Under Voluntary Insurance?
Certain conditions must be met to retire through voluntary insurance, i.e., to retire without working. The requirements under current law for retiring without working are:
- Being a citizen of the Republic of Turkey,
- Being at least 18 years old,
- Not working in a way that requires mandatory insurance under the law, or if working as insured under Article 4/1-(a), working less than 30 days a month or not working full time,
- Not already receiving a pension under the social security system,
- Applying for voluntary insurance registration with the institution.
Turkish citizens working abroad through a Turkish institution or organization can also be covered by voluntary insurance.
The most important step for retiring without working is to submit the application. First-time applicants for voluntary insurance must submit their voluntary insurance entry declarations to the SGK office in the district where they reside. There is no automatic invitation from SGK or other institutions without this application. Turkish citizens living abroad can apply through agreed institutions by providing their Turkish address.
Once the voluntary insurance entry form and the request petition are registered with SGK, the payment schedule for contributions is determined and the insurance record becomes active.
Calculation of Contributions to Be Paid
Normal retirement rules apply to those who wish to retire without working. The most important point is that monthly contributions must be paid to SGK. Under social security regulations, the voluntary insurance premium must be based on a declared income between the minimum base (the gross minimum wage) and a maximum equal to 6.5 times the minimum wage. The amount the insured person selects as the contribution base determines both the contributions they pay over time and the pension amount they will receive in retirement.
When the minimum wage increases, the minimum voluntary insurance premium also rises accordingly. Voluntary insurance premiums can be paid until the last day of the month following the month to which they belong. Those who benefit from the right to retire without working are also eligible for health services.
What Are the Conditions to Retire by Voluntary Insurance?
To qualify for retirement by making voluntary insurance payments, an individual must not be working, must not already be retired, and must be at least 18 years old. These three conditions must be satisfied.
There is an opportunity for people who previously worked but have missing contribution days. If you complete your missing days with voluntary insurance payments and the total remaining days are less than 1,261 days (approximately 3.5 years), you may qualify for retirement through SGK.
If you previously had SGK contributions and your missing contribution days exceed 1,261 days, be cautious: making voluntary payments beyond 1,261 days may place you in the Bağ-Kur system for retirement instead.
Premium amounts you will pay are determined based on the current minimum wage. By paying 32% of the current gross minimum wage you can become voluntarily insured. For the current year this contribution amount is 941.76 TL. You may also choose to increase this base up to 7.5 times the minimum wage if you prefer.
Voluntary Contributors Receive Free Health Coverage
Individuals who make voluntary insurance payments can benefit from health services free of charge. This coverage can extend to the contributor as well as to dependents they are responsible for, such as a spouse and children. If non-working citizens do not make voluntary payments, they must undergo an income test and pay the General Health Insurance (GSS) premium if required.