AN OVERVIEW OF VOLUNTARY PRIVATE PENSION FUNDS IN TURKEY

Abstract

We provide an overview of the voluntary pension fund market in Turkey by starting with recent develop- ments in the global pension markets and then focusing on the pension fund reform in Turkey and the following developments since 2003. Findings from the literature indicate that the reforms on the introduction of volun- tary pension funds in Turkey have positive implications for the overall national savings rates and capital market development. Voluntary pension funds create extra income for beneficiaries after their retirement. However, re- designing the system in a simplified structure is necessary in order to increase participation, inclusion and also to ensure persistency.