Türkiye’s early retirement law sparks debate over $300B cost
People waiting for the application in front of the Social Security Institution (SGK) building in Istanbul after the adoption of the law on those who are over the age of retirement (EYT), Istanbul, Türkiye, March 6, 2023. (AA Photo)
The financial implications of Türkiye’s newly enacted early retirement law have sparked significant debate.
Introduced by the ruling Justice and Development Party (AK Party) in 2023, the regulation allows over 2 million employees to retire early, raising concerns about the cost to the state.
State burden estimated at $300B
AK Party Deputy Chairman Mustafa Elitas revealed that the five-year cost of the early retirement program (EYT) is projected to be around $300 billion.
For comparison, the Feb. 6 earthquake cost Türkiye approximately $60 billion.
The EYT law drastically changes pension allocation conditions, primarily benefiting those insured before September 9, 1999, and allowing them to retire without age restrictions.
The number of EYT retirees is expected to reach 2.5 million over the next five years, with projections suggesting the total could climb to 4.8 million by 2028.
Debate over EYT cost estimates
Elitas asserted broad societal support for the early retirement measure, stating, “No one objected. In 2023, 2.5 million people will retire, and by 2028, the number will rise to 4.8 million. Approximately 3 million people have already retired under EYT.”
However, experts have criticized Elitas’s statements, suggesting that his cost estimates imply an unrealistic monthly pension of ₺75,000 ($2,276) for EYT retirees.
