The AKP government is preparing to completely change the pension system. According to the media, the Turkish government is planning to raise the retirement age and change the salary formula basing it to the number of premium days.
As per the news of Besti Karalar from Ekonomim, the retirement age, which is currently 58 and 60, will be raised to 60 for women and 65 for men. However, this will not affect the rights introduced with EYT.
Retirees will receive a salary according to the number of premium days they have paid. Since technically the root salary cannot be equalized to the lowest pension, another formula will be applied instead of enacting a law in this area every 6 months.
Social support will be provided to those who receive low pensions and those who make a living only with their pensions. Road-food, transportation, fuel and rent assistance will be provided. The lowest pension will be brought to a certain limit. Treasury will no longer support the lowest pension. Support will be provided for household-based pensions. Rent subsidies will be given in cash.
Formulas in the pension systems will further be examined. Accordingly, the retirement age and the number of premium days will be redefined. The retirement age will be fixed at 65 for men and 60 for women. Everyone will receive a salary according to the amount of contributions they have paid. The insurance periods required for retirement will be clearly defined. Social assistance will be provided to those who receive the lowest pension and have difficulty making ends meet. These supports will not be applied for every low pensioner.
The lowest pension will be brought to a certain limit. The treasury will no longer support the lowest pension. Support will be provided for household-based pensions. The Ministry of Family and Social Policies will provide support such as road-fuel-food-transportation to low-income people who cannot make a living and have low pensions.
According to the report, the package is expected to be discussed after the 2025 budget. A gradual transition process is also envisaged.