Turkey’s Pension System Overhaul: A Look at the Major Changes

The Turkish government is planning a major overhaul of the country’s pension system, a move that will impact millions of workers. The reforms are designed to address the growing strain on the system caused by a rapidly aging population. The proposed changes include adjustments to the retirement age and the number of required years of contributions. A key concern is the rising proportion of retirees to workers. In 2023, there were 1.65 workers for every retiree, but this ratio is projected to decline significantly in the coming decades. The reforms aim to ensure the sustainability of the system by automatically adjusting retirement benefits based on factors like life expectancy and the worker-to-retiree ratio. Alongside these changes, a supplementary pension system is being developed. This system would require contributions from both employers and employees, creating an additional layer of financial security for workers. The goal is to provide a more robust and sustainable pension system for future generations.