Türkiye among countries spending least on retirees

Türkiye ranks among the countries that allocate the least amount of its gross domestic product (GDP) to retirees and social protection, including healthcare, according to data from the DISK Research Center (DISK-Ar).

While the global average for government spending on retirees is 7.9% of GDP, Türkiye’s rate stands at 4.3%.

Limited spending on retirees

Türkiye’s expenditure on retirees has consistently been lower than the global average. The lowest pensions in Türkiye remain far below the minimum wage, exacerbated by the ongoing debate over the source of funds for retirement benefits.

This issue is further highlighted in the discussions around the “EYT” (Retirement Age Victims), where retirees are often portrayed as a financial burden on the economy.

Pensions lagging behind minimum wage

In 2001, the lowest pension in Türkiye was equivalent to 1.51 times the minimum wage. By July 2024, despite adjustments for inflation, the lowest pension only amounts to 0.74 of the minimum wage.

This stark contrast highlighted the decline in purchasing power of retirees.

Global context

According to the DISK-Ar report, based on International Labour Organization (ILO) data, the global average for social protection spending, including healthcare, is 19.3% of GDP. In Türkiye, this figure is only 10.5%.

In Eastern European countries, public spending on retirees accounts for 9.3% of GDP, while in Western Europe, it reaches 11.3%. This places Türkiye among the countries allocating the least amount of resources to retirement expenditures globally.

Arguments on social security

Common objections during pension increase discussions include claims of insufficient funds and the social security system running a deficit. However, the DISK-Ar report, published in March 2024, counters these claims, showing that such statements do not reflect reality.

The ILO’s latest “Social Protection Report 2024-26: Universal Social Protection for Climate Action and a Just Transition” provides detailed information on government spending on social protection and pensions, offering further context to the ongoing debate in Türkiye.