An appraisal of Turkey's voluntary individual pension system from a perspective of pension equality

Sertac Babat, Derya Gultekin Karakas, Mehtap Hisarciklilar

Research output: Contribution to journalArticlepeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)784-801
Number of pages18
JournalSocial Policy & Administration
Volume55
Issue number5
Early online date25 Oct 2020
DOIs
Publication statusPublished - Sep 2021

Bibliographical note

This is the peer reviewed version of the following article: Babat, S, Gultekin Karakas, D & Hisarciklilar, M 2021, 'An appraisal of Turkey's voluntary individual pension system from a perspective of pension equality', Social Policy & Administration, vol. 55, no. 5, pp. 784-801, which has been published in final form at https://dx.doi.org/10.1111/spol.12659. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Keywords

  • Turkey
  • multi-pillar pension system
  • pension inequality
  • pension reform

ASJC Scopus subject areas

  • Development
  • Sociology and Political Science
  • Public Administration

Fingerprint

Dive into the research topics of 'An appraisal of Turkey's voluntary individual pension system from a perspective of pension equality'. Together they form a unique fingerprint.

Cite this