Since 2003, Turkey’s pension policy has been increasingly based on facilitation of individual savings administered by private pension funds. The introduction of private pensions is expected to reinforce inequalities as a result of socio-demographic features and pension system design. This article evaluates voluntary individual pension system with a perspective on pension equality. Monthly contributions to pension accounts are explored on the basis of socio-economic and demographic characteristics of the customers of a currently operating pension company. Findings reveal that differences in people’s saving capacities have become a source for pension inequality. Furthermore, state subsidies, which increase in proportion to individual contributions, strengthen unequal distributional dynamics. Pension privatization harms social solidarity as it intensifies existing social inequalities.
- Pension reform
- Multi-pillar pension system
- Pension inequality
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Social Sciences(all)
Babat, S., Gultekin Karakas, D., & Hisarciklilar, M. (Accepted/In press). An appraisal of Turkey’s Voluntary Individual Pension System from a perspective of pension quality. Social Policy & Administration, (In-press), (In-press). [SPOL12659]. https://doi.org/10.1111/spol.12659