Those stuck by retirement age, known as EYT (early retirement age issue) claimants, have returned to the public agenda. Recently, EYT groups submitted petitions to parliament and even formed a political party to defend their rights. Discussions have included a so-called Finland model, but adapting that model to Turkey’s social security structure appears largely impractical.
EYT Claimants Await a Solution
People affected by the retirement-age barrier are making greater efforts than ever to remove the obstacle that prevents them from retiring. Economic hardships that intensified during the pandemic have mobilized many within the EYT group. Although EYT claimants have been increasingly visible and vocal about resolving the injustice they face, there is currently no active government plan to address the issue.
The core of the EYT problem traces back to reforms introduced in 1999. Before that date, insured workers who entered the SSK system could qualify for retirement without an age requirement if female workers completed 20 years of insured service and 5,000 days of paid premiums, while male workers qualified with 25 years of insured service and 5,000 premium days. Under the Bağkur system the requirement was similar: 20 years for women and 25 years for men. In other words, age was not a condition for retirement before 1999.
However, in September 1999 the social security system underwent sweeping changes whose effects still persist. Alongside insured-service periods and required premium days, a retirement age began to be imposed. A phased schedule set the retirement age to 58 for women and 60 for men, while the required premium days rose to 7,000. This new age condition created the situation now referred to as those “stuck by retirement age.”
The Number of EYT Claimants Is Growing
When the 1999 changes were first implemented, the public did not anticipate their full impact, so the EYT issue did not immediately dominate public debate. Contrary to those early expectations, the number of people affected has grown steadily, and EYT claimants increasingly expect a resolution.
The exact number of people affected is not precisely known, but estimates suggest around 6.3 million individuals could be disadvantaged by the current rules. If a blanket solution were provided, a similar number of people could become eligible for retirement. Such a sudden rise in retirees would heavily strain public finances, which is why policymakers have long hesitated to propose broad remedies. Analysts estimate that allowing EYT claimants to retire immediately could increase social security system costs by roughly 700 billion Turkish lira over ten years — a fiscal impact that institutions find difficult to absorb.
Is the Finland Model Viable?
Recently, the so-called Finland model has been raised as a potential approach to redress EYT claimants’ grievances. In essence, this approach offsets early retirement by applying proportional reductions to pensions and requiring additional post-retirement contributions, while allowing for higher eventual pension payments for those who opt to pay more. While the concept seeks to balance affordability and fairness, implementing it in Turkey faces major structural hurdles.
Finland’s retirement landscape differs significantly: average retirement age there is around 63, and the system is not a single, unified scheme but split into public and private components. Minimum pension levels in Finland are also much higher in practice — a level that would be considered low-income even there. In Turkey, the lowest statutory pensions are considerably lower. Given these disparities, solutions based on Finland’s framework would not directly translate to Turkey; relatively modest pensions would not resolve the economic hardship experienced by many EYT claimants.