Individual pension system is seeing an increase in the number of retirees. According to the latest figures, a total of 134,000 people have gained the right to retire from the system. In 2020, 18,000 people obtained retirement rights. For those who retired, the average payment was about 83,000 lira.
Number of Retirees in the Individual Pension System Is Rising
The number of people retiring under the individual pension system has been rising in recent years. Many people wonder how they can retire through this system. Since the system began operating, 134,000 people have secured the right to retire. The number of participants who have remained in the system for at least 10 years and become eligible for retirement continues to grow. Because retiring from the system also requires reaching age 56, it can allow earlier retirement compared with some Social Security (SGK) conditions. With retirement ages in SGK rising to 65, the individual pension system represents an important option for those seeking early retirement.
A total of 134,000 people who met the necessary conditions have obtained retirement rights from the individual pension system. These first retirees illustrate how the system works in practice. A total of 305 billion lira was paid to the 134,000 retirees, and this amount includes state contributions. Looking only at individual contributions, the average payment per person was about 83,000 lira. Those who paid higher premiums received more than 160,000 lira. For example, people who retired last year received retirement payments between 50,000 and 100,000 lira, with an average around 70,000 lira. Six hundred participants who paid high contribution shares received over 400,000 lira in retirement payments.
As Contributions Rise, Retirement Payouts Increase
When considering the numbers, the amounts received from the individual pension system vary. As contribution levels increase and the duration in the system lengthens, retirement payments grow accordingly once eligibility conditions are met. To illustrate the advantage for lower contributors: a person who stayed in the system for 10 years and retired at age 56 receives an average of about 100,000 lira. By contrast, a worker who retires on the minimum wage after 20 years of service would receive roughly 59,000 lira as severance pay. Because the individual pension system is not a direct substitute for SGK, it stands out as a recommended option for those who want greater financial comfort in old age. Receiving pensions from both the individual pension system and SGK after meeting requirements improves overall quality of life.
Most Participants Remain in the System
Age is a key factor in the individual pension system. To receive retirement payments from the system, participants must generally have remained at least 10 years and be at least 56 years old. While many people reach age 56 and begin receiving payments, a significant number continue to stay in the system. Nearly 107,000 people who have earned the right to retire under the individual pension system still remain active participants. Of these, about 51,000 are around age 59, some 34,000 are between 60 and 64, and approximately 2,500 are over 75. Since longer participation typically leads to higher payments, many choose to remain in the system. Additionally, in the event of a participant’s death, accumulated investments in the individual pension system can be accessed by first-degree relatives.