Atilla Benli, President of Insurance Association of Turkey: ”With PPS, we secure the future of our 23 million young population under the age of 18.”

H.E. Mr. Recep Tayyip Erdoğan’s statements at the Economic Reforms Promotion Meeting regarding the Private Pension System (PPS) caused great excitement in the insurance and private pension sector. Atilla Benli, The President of Insurance Association of Turkey quoted the following: ” With PPS, we secure the future of our 23 million young population under the age of 18.”

Atilla Benli, President of Insurance Association of Turkey: ”With PPS, we secure the future of our 23 million young population under the age of 18.”
16.03.2021
A+
A-

H.E. Mr. Recep Tayyip Erdoğan’s statements at the Economic Reforms Promotion Meeting regarding the Private Pension System (PPS) caused great excitement in the insurance and private pension sector. Atilla Benli, The President of Insurance Association of Turkey quoted the following: ” With PPS, we secure the future of our 23 million young population under the age of 18.

The statements of H.E. Recep Tayyip Erdogan regarding the insurance sector at the Economic Reforms Promotion Meeting were welcomed by the member organizations of the Insurance Association of Turkey (TSB), which is the umbrella organization of Turkey’s insurance industry. With the new application, the path is being cleared for 23 million young people under the age of 18 to benefit from PPS, and a significant support is provided with 25 percent state contribution.

Atilla Benli, President of Insurance Association of Turkey, expressed his feelings about the relevant issue as follows; We work intensively with all our stakeholders for the necessary preparations. We welcomed the statements of H.E Recep Tayyip Erdoğan in this direction with excitement. PPS will serve as a money-box for our children. Likewise, with the inclusion of the savings in our foundations and funds into the system, the integration of assurances of special nature such as education, health and life insurances; the scope of the PPS has also expanded. Along with that, PPS will continue to contribute to the advancement of our capital markets and will resolutely continue to maintain its role as a national security shield against financial fluctuations.”

Within the scope of economic reforms, pension savings in foundations, funds, associations etc. other than PPS will be allowed to be transferred to PPS until the end of 2023. In this way, the floodgates shall be opened for a much wider population to benefit from high fund returns. The amount to be transferred is expected to be 10 billion Turkish Liras in the first place, and the total potential is expected to reach 50 billion Turkish Liras.

With the expansion of the scope of the PPS by integrating with structures of special nature such as education, health and life insurances, participants will be able to use their savings when deemed necessary other than retirement periods. In this context, PPS will be allowed to seize every inch of the life cycle while maintaining its “foul-weather friend” identity.

Atilla Benli, President of TSB (Insurance Association of Turkey) continued his words as follows; ”We consider the announced reform package as a crucial contribution to the efforts of our private pension sector to ensure economic and social sustainability. Culture and value aspects should also be noted in this regard. Efforts on raising the awareness of ‘saving’ on young generations will gain further momentum.”  

The PPS, which is envisaged to be enrolled by 2.5-3 million young people under the age of 18, is also expected to reach a fund size potential of 100 billion Turkish Liras in the medium term with transfers from foundations and funds.

 

There was a significant increase in private pension system and automatic enrolment in 2020, equivalent to an approximate ratio of 28%, compared to previous year in the total net asset value of the fund.  This also indicates the trust in the system during the Covid-19 pandemic. According to the data of the Pension Monitoring Center on March 05, 2021, the total number of participants enrolled in PPS and automatic enrolment exceeded 12.6 million. The total fund size, including the state subsidy, reached nearly 171 billion Turkish Liras.

COMMENTS

No comments yet. You can make the first comment via the form above.