Pensioners Demand Flat Raise After Drop in Purchasing Power

The Turkish Pensioners Association has called for a flat-rate increase to monthly pensions, citing the additional expenses caused by the coronavirus pandemic and rising inflation, which have significantly reduced retirees’ incomes.

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Retirees’ Purchasing Power Has Fallen

In a statement, the Turkish Pensioners Association urged urgent measures to address pension levels. The association emphasized that the coronavirus crisis and high inflation have severely eroded retirees’ purchasing power, leaving many unable to cover monthly expenses and facing serious hardship. As Turkey’s economic situation deteriorates and effective measures remain lacking, low- and fixed-income groups are bearing the brunt of the impact. Although many pensions remain unchanged or increase only slightly, inflation has pushed up prices across a wide range of goods, reducing real incomes. With the minimum pension around 1,500 Turkish lira, living on that amount for a month has become almost impossible for many.

Price increases have affected food, electricity, fuel, water, internet and cleaning supplies. The pandemic also raised the cost of items retirees use more often—such as masks, face shields and dietary supplements—making it increasingly difficult for pensioners to make ends meet. Retail price hikes have further depleted pensioners’ monthly income, prompting the call for a flat-rate, across-the-board increase to help restore basic purchasing power.

Pension Increases Fall Short

The association’s demand for higher pensions is based on the observation that current increases leave pensioners far behind rising living costs. Statutory worker pensions are adjusted twice a year—in January and July—based on inflation rates for the preceding six-month period, while civil servant pensions are updated according to collective agreement rates and any inflation difference. According to TÜİK’s Consumer Price Index (CPI) data, the CPI rose 14.03% in November compared with the same month last year. The CPI covering the July–November period is expected to be announced around 7.2%. When December’s CPI rate is added, the total adjustment for pensions in the new year becomes clearer.

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If December’s CPI increase is determined at 1%, the six-month CPI would reach approximately 8.09%. Under that scenario, the first 2021 pension adjustment for workers who retired in 2000 would raise the minimum worker pension from 2,232 TL to about 2,413 TL—an increase of 181 TL, roughly 6 TL per day. The association argues that this level of increase would still be insufficient for many retirees.

Still Below the Hunger Threshold

Even with a 180–200 TL average increase for worker pensions, the lowest pensions would remain below the poverty and hunger thresholds—estimated at around 2,516 TL—leaving the most vulnerable pensioners undernourished or unable to meet basic needs. The proposed flat-rate (“seyyanen”) increase aims to reduce income inequality among pensioners by granting the same nominal raise to everyone rather than applying a percentage increase. Under a percentage-based raise, larger pensions grow more in absolute terms; with a flat-rate raise, every pensioner receives the same additional amount—for example, if the rise is 100 TL, everyone’s pension increases by 100 TL. This approach benefits those with the lowest pensions most and is why pensioners and advocacy groups are pressing for an equal, fixed uplift to better protect low-income retirees.