Recently the issue of those who are blocked from retirement due to age requirements—commonly referred to as “EYT”—has attracted significant public and media attention. Because it is a prominent topic, the government has been proposing different models to resolve the problem. The committee tasked with studying improvements has recently highlighted a Finnish-style approach as a possible solution for people affected by the age-related retirement barrier.
What Is the Finland Model?
The Finland model is being considered as a practical remedy for those who currently cannot retire because they do not meet the statutory age. Under this approach, people who opt to retire earlier than the established retirement age receive a reduced pension. Those who accept the reduction receive a pension payment, while those who decline continue working until they reach the official age. This flexibility is seen as an advantage because it offers an immediate option and helps alleviate hardship for many people.
For the model to work effectively, however, the broader pension framework must be compatible. Implementing the Finland model requires examining Finland’s own pension structure, which comprises two complementary systems. The first is employment-based earnings-related pension, granted on the basis of work or self-employment. Employers register all employees for pension insurance and pay the required contributions; entrepreneurs and business owners pay premiums themselves based on set rates.
The second system, known as national pension, is designed for people who do not qualify for sufficient earnings-related benefits. If an individual’s contributions or working years are insufficient and their earnings-related pension would be very low, they may be eligible for the national pension. The amount of the national pension depends on how long the person has lived or worked in Finland. The major benefit of this dual system is that it ensures citizens can receive a pension; in practice, it provides a safety net so that everyone can retire with some level of income.
What Is Partial Early Old-Aage Pension?
Under the Finland model, people who have reached age 61 can opt for a partial pension before the full retirement age. This option is called partial early old-age pension. The insured person decides whether to receive a reduced portion of the full pension—commonly 25% or 50% of the normal amount—when taking partial retirement.
The system also allows the insured to continue working full time while receiving a partial pension, or to leave work entirely if they prefer. Choosing the partial pension, however, reduces the final full pension amount compared with waiting for full retirement age.
Because the number of people affected by age-related retirement barriers has increased, adopting a Finland-style model in Turkey would require broad social consultation—particularly with the business community—to ensure the design is acceptable and workable.
Current Status of EYT
The population of people unable to claim retirement due to unmet age or contribution conditions continues to grow. Officials have discussed the issue without giving precise timelines for a final decision. As an example, Family, Labor and Social Services Minister Zehra Zümrüt Selçuk recently noted that the technical term for retirement is “old-age pension,” which is normally paid when a person is elderly. She observed that the average age of those waiting under the EYT classification is around 48—an age not generally considered “old” anywhere in the world—and that last year the average age of retirees was about 52–53. Returning the retirement age to 65 for everyone would take many years, she said, so a phased, graduated approach tied to contribution and insurance periods is being discussed. She also noted that many EYT applicants want to work after receiving retirement and that policymakers are consulting with the Ministry of Treasury and Finance to develop solutions, though no final timeline has been provided.