To receive a higher pension, measures must be taken to strengthen the factors that affect pension calculation. Those aiming for a high pension should first ensure their earnings subject to contributions (prime earnings) are as high as possible. The most influential factor in pension calculation is the insured’s reported gross earnings; higher gross earnings can yield a larger pension even if the insured has fewer contribution days than others.
Those who want to increase their pension should begin applying measures at least seven years before retirement. Even small details—such as the month the retirement application is submitted—can affect the pension calculation. Because pension calculations vary according to the insurance branch and the date the insurance began, pension estimates should use formulas tailored to the relevant insurance category and years of coverage.
What Are the Key Criteria for Receiving a Higher Pension?
Factors that increase pension payments include the retiree’s age, employment status, sector of work, the period when they were insured, number of contribution days, and the base on which contributions were paid. The most important factor in determining the pension is the gross salary. A higher gross salary (prime earnings) leads to a higher pension. Consequently, someone with high gross earnings can receive a larger pension than a person with more contribution days but lower reported earnings.
What Can Be Done to Increase Pension Payments?
Practical steps to increase pension payments include:
- Submitting the retirement application after inflation adjustments have been announced can increase the pension.
- Making contributions for buy-back (borçlanma) at the maximum base raises the pension amount.
- Continuing to work beyond the earliest retirement age results in higher pension calculations.
- If contributions for the final 3.5 years before retirement are paid at the maximum base, the pension rises.
- Working a secondary job and paying contributions on that income increases the pension base.
- Having the actual salary reflected on payrolls (rather than a lower declared wage) increases the pension.
- Pensions are higher for those who declare a greater number of dependents.
- Filing a service determination lawsuit (hizmet tespit davası) against employer violations can increase the pension if underreported or unreported work is proven.
- The insurance branch to which the insured belongs affects pension calculation.
- Continuing to work after fulfilling required contribution days, while paying contributions on a high base, raises the eventual pension.
When Should the Retirement Application Be Submitted to Maximize Pension?
The timing of the retirement application should consider inflation figures. Because pension calculations incorporate the update coefficient for the January of the application year, it is often beneficial to wait until inflation and growth figures are clear before deciding when to file. Applications filed in the first half of the year reflect the January inflation adjustment in the pension; applications filed in the second half also reflect the July adjustment. For example, a retirement application filed in December 2022 results in a pension calculated using the 2022 update coefficient and paid in January 2023.
If year-end growth is negative, filing the application in December may be preferable. If growth is positive, filing in January could be more advantageous. Choosing the right month can therefore increase the pension amount.
When to File to Maximize Both Pension and Severance Pay?
Because the severance pay ceiling is adjusted in January and July each year, filing the retirement application in January rather than December can help capture the higher ceiling for severance calculations. Determining the correct timing is important both for achieving a higher pension and for maximizing severance pay.
How Does Buy-Back (Borçlanma) Increase the Pension?
To increase pension through buy-back, the buy-back payment should be made based on the maximum contribution base. The higher the base used for buy-back, the higher the resulting pension. Buy-back of periods before 2000 has a stronger effect on the pension than later periods. Paying buy-back for military service, maternity leave, or foreign-service periods at the maximum base can increase pensions by up to around 70% in some cases.
How Important Is Retirement Age for a Higher Pension?
Pension amounts generally increase with retirement age. For each additional year worked past certain ages, pensions may increase. Women who continue working after age 50 and men after age 55 receive an annual pension increase of approximately 1% for each extra year of insured work. Therefore, retiring at 55 instead of the earliest eligible age may raise a woman’s pension by about 5%, and retiring at 60 may yield around a 10% increase.
Does Reporting Maximum Earnings for the Last 3.5 Years Increase the Pension?
Reporting the last 3.5 years (1,261 days) at the maximum contribution base typically raises the pension by an average of 1,200–1,500 TL. This is commonly referred to as the 1,261-day rule. Regardless of whether the insured belongs to the 4/A or 4/B insurance branch, paying maximum-base contributions during the final 3.5 years yields a monthly increase—often around 15–20 TL per month for each month reported at the maximum base, depending on circumstances.
Contributions can be paid up to 7.5 times the minimum wage for the relevant period. Those who wish to pay on the maximum base should reference the 7.5-times factor for the applicable minimum wage when calculating contribution amounts.
How Do Secondary Job Contributions Affect Pension?
To raise pensions, contributions for secondary jobs must be reported and paid. Many who work a second job assume it does not matter, but paying contributions on that income increases the declared base to the social security institution and raises the eventual pension. For example, someone with a 4,000 TL gross salary plus an additional 2,000 TL gross from a second job can see a pension increase of roughly 50%. If the secondary job brings in 1,000 TL, the pension may rise by about 25% upon retirement.
Does Showing Actual Salary on Payroll Increase Pension?
Having the real salary reflected on payroll is crucial because monthly earnings are the main factor in pension calculation. Those whose payroll shows a lower or minimum wage despite receiving a higher salary should object and seek correction. Regular additional payments such as bonuses, commissions, or housing allowances should also be included in gross earnings to boost the pension base.
Does Declaring Dependents Increase the Pension?
Listing dependents on the pension application increases the pension. When filling the entitlement form, including a spouse and children (especially multiple children) raises the calculation base and results in a higher monthly pension rate.
Can a Service Determination Lawsuit Increase the Pension?
Filing a service determination lawsuit can raise the pension if the insured’s workplace failed to register them, registered them late, or declared earnings lower than the real wage. If any of these situations occurred, the insured can file a lawsuit to establish actual work and earnings. If the court finds in favor of the claimant, the pension can be recalculated at a higher rate.
Can Switching from Bağ-Kur to SSK Increase the Pension?
Switching from 4B (Bağ-Kur) to 4A (SSK) can increase pensions. SSK is generally more advantageous than Bağ-Kur for retirement calculations. Those who have contribution periods before 2000 and move from Bağ-Kur to SSK before retiring can see an average pension increase of about 15–20%.
The insurance branch an insured person belongs to during the last seven years before retirement affects pension calculation. For those whose insurance started after 2008, pension calculations are based on the entire working history rather than only the last seven years. If the last seven years include periods in different insurance branches, the institution in which the insured served the 1,261 days within the last seven years will determine the pension branch.
For example, an insured who worked under different insurance branches between 2000–2004 and 2014–2017 will usually retire under the branch where they completed the four years of contributions between 2000–2004. If contributions in the last seven years are equally divided between branches, the most recent branch before retirement is considered. For those insured after October 2008, pension calculations emphasize which branch carried a larger share of total contributions across their working life.
How Can Those Who Keep Working After Completing Required Contribution Days Raise Their Pension?
Those who continue working after completing required contribution days should report earnings at the maximum base to increase their pension. Because not every insured can report a full month at the maximum base, paying contributions for five days at the maximum base after fulfilling required days is often recommended. Paying five extra days at the maximum base can result in a higher pension calculation.
How Do Years Worked as an Insured Affect the Pension?
Changes in pension amounts based on the years when contributions were paid relate to how growth rates are incorporated into pensions. Pension calculations are divided into three periods: before 2000, 2000–2008, and after 2008. For contributions paid between 2000 and 2008, the full growth rate is applied to the pension calculation.
For contributions paid after 2008, only 30% of the growth rate is included in the pension calculation. Therefore, pensions for those whose work history is primarily after 2008 tend to be lower than those with substantial pre-2008 contributions. For higher pensions, those who can buy back pre-2008 periods are often advised to do so at the maximum base.
What Should Those Whose Pensions Were Calculated Lower Than Expected Do?
Those who receive a lower-than-expected pension should submit a written request to the Social Security Institution asking for a recalculation. By filing a petition that explains why the pension appears low, retirees can ask the institution to re-examine their records. If the review finds the claimant correct, the pension will be increased. Because pension calculations depend on many variables, differences between an individual’s estimate and the institution’s calculation are common.