What is Personal Pension System?
The personal pension system is a private savings system that aims to provide income to individuals during retirement in addition to the existing public social security system. It is entirely based on voluntary participation and supported by state contribution. The aim is to ensure that people make regular savings in order to ensure that their living standards are higher during their retirement periods.
Every individual who has reached the age of 18 is entitled to retire after reaching the age of 56, provided that s/he has been in this system for at least ten years. Individuals who are not included in any social security system can also join the personal pension system.
Click here for the Personal Pension Brochure
About Interest-Free Private Pension System
Katılım Emeklilik provides services in accordance with the principles of interest-free personal pension.
Pension investment funds based on participation accounts, gold, stocks in compliance with the principles of participation banking, and public and private sector and Sukuk (lease certificates) approved in terms of compliance were created for people who are religiously sensitive to interest. In addition, investing in foreign exchange, real estate, and commodities by complying with the consumption contract rules also does not involve any interest. Investments are made in instruments that have been approved by the advisory board and are allowed to be bought and sold religiously. Investments are made without interest and in accordance with the principles of participation banking.
Katılım Emeklilik Interest-Free Mutual Funds,
- Participation accounts opened in participation banks
- Stocks suitable for the participation index (gold, precious metals, interest-free security mutual funds)
- Sukuk, lease certificate, etc., in Turkey or exported abroad.
State Contribution
Turkish citizens and blue card holders included in the Personal Pension System benefit from the state contribution at the rate of 30% of the contributions they pay.
Upper Limit
State contribution cannot exceed 30% of the gross minimum wage of the relevant year. The upper limit calculation is made on a participant basis.
Payment on Behalf of Someone Else
You can open a personal pension account on behalf of someone else and ensure that person receives a state contribution.
Opening Multiple Accounts
In case you have more than one PPS account, your upper contribution limit is distributed to your PPS accounts. For example, if you have two accounts and you pay 10,000 TRY to one and 30,000 TRY to the other, you will receive 30% of the state contribution for the first account and 70% for the second account.
Additional Contribution
Apart from your regular contribution to the system, in the beginning, you also benefit from the state contribution for your additional and regular contribution.
State Contribution Progress Rates
If you stay in the system between 3 to 6 years, you can qualify for 15%, between 6 to 10 years for 35%, over 10 years for 60%, and your full state contribution at the time of retirement.
Seizure
Your state contribution amount and its revenues cannot be seized, pledged, or included in the bankruptcy estate.