Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation
While the private pension system in Turkey reached 14.5 million participants and 433.4 billion TL ($26.2 bn) assets by the end of 2022, the ratio of assets to GDP is only around 3%. The main reasons for the low asset/GDP ratio are the limited contributions and the low average seniority of contract....
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Istanbul University Press
2023-08-01
|
| Series: | İktisat Politikası Araştırmaları Dergisi |
| Subjects: | |
| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1B9695FD64B9415BA75E49AD1226B948 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849313291060379648 |
|---|---|
| author | Hasan Meral İsmail Dilek |
| author_facet | Hasan Meral İsmail Dilek |
| author_sort | Hasan Meral |
| collection | DOAJ |
| description | While the private pension system in Turkey reached 14.5 million participants and 433.4 billion TL ($26.2 bn) assets by the end of 2022, the ratio of assets to GDP is only around 3%. The main reasons for the low asset/GDP ratio are the limited contributions and the low average seniority of contract. In 2021, Turkey implemented a regulation that allowed the participation of under-18-year-olds in private pension plans. The main purpose of the regulation was to increase the coverage rate of the system and to get people to save for longer. Although the regulation enabled the number of participants to increase in the short term, its longterm effects on private pension assets are uncertain. The aim of the study is to measure the effect of the participation of under-18-year-olds onprivate pension assets in Turkey. The univariate time series method was used to predict the growth of the private pension system in Turkey for the next ten years. The prediction relied on the data of the private pension system’s asset size, annual net annual contribution, growth rate, and rate of return between 2003 and 2021 in Turkey. The results showed that by the end of 10 years, the assets of under-18-year-olds would account for 7% of the total private pension assets and that 22% of the annual contribution would be paid by under-18-year-olds. |
| format | Article |
| id | doaj-art-6c649da02cac4cbda31cb3b48b768232 |
| institution | Kabale University |
| issn | 2148-3876 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | İktisat Politikası Araştırmaları Dergisi |
| spelling | doaj-art-6c649da02cac4cbda31cb3b48b7682322025-08-20T03:52:48ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762023-08-0110239540710.26650/JEPR1167579123456Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth EstimationHasan Meral0https://orcid.org/0000-0002-2079-0674İsmail Dilek1https://orcid.org/0000-0002-9088-764XMarmara Üniversitesi, İstanbul, TürkiyeGalen College of Nursing, Louisville, Amerika-Birleşik-DevletleriWhile the private pension system in Turkey reached 14.5 million participants and 433.4 billion TL ($26.2 bn) assets by the end of 2022, the ratio of assets to GDP is only around 3%. The main reasons for the low asset/GDP ratio are the limited contributions and the low average seniority of contract. In 2021, Turkey implemented a regulation that allowed the participation of under-18-year-olds in private pension plans. The main purpose of the regulation was to increase the coverage rate of the system and to get people to save for longer. Although the regulation enabled the number of participants to increase in the short term, its longterm effects on private pension assets are uncertain. The aim of the study is to measure the effect of the participation of under-18-year-olds onprivate pension assets in Turkey. The univariate time series method was used to predict the growth of the private pension system in Turkey for the next ten years. The prediction relied on the data of the private pension system’s asset size, annual net annual contribution, growth rate, and rate of return between 2003 and 2021 in Turkey. The results showed that by the end of 10 years, the assets of under-18-year-olds would account for 7% of the total private pension assets and that 22% of the annual contribution would be paid by under-18-year-olds.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1B9695FD64B9415BA75E49AD1226B948private pension in turkeyunder-18-year-olds private pensionpension asset forecastunivariate time series |
| spellingShingle | Hasan Meral İsmail Dilek Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation İktisat Politikası Araştırmaları Dergisi private pension in turkey under-18-year-olds private pension pension asset forecast univariate time series |
| title | Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation |
| title_full | Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation |
| title_fullStr | Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation |
| title_full_unstemmed | Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation |
| title_short | Participation of under-18-year-olds in the Private Pension System in Turkey: A Growth Estimation |
| title_sort | participation of under 18 year olds in the private pension system in turkey a growth estimation |
| topic | private pension in turkey under-18-year-olds private pension pension asset forecast univariate time series |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1B9695FD64B9415BA75E49AD1226B948 |
| work_keys_str_mv | AT hasanmeral participationofunder18yearoldsintheprivatepensionsysteminturkeyagrowthestimation AT ismaildilek participationofunder18yearoldsintheprivatepensionsysteminturkeyagrowthestimation |