Ruling AK Party announces major overhaul of Türkiye’s retirement system

Ruling Justice and Development Party (AK Party) Group Leader Abdullah Guler has announced plans to update Türkiye’s retirement system.

“In developed countries, people don’t retire at the age of 45-50, but in our country, they do. We need to bring this to a more realistic basis in terms of age, premium amounts, and duration,” Guler stated.

For a healthy social security system, there should be an average of four employees per retiree, but in Türkiye, there are only two.

This imbalance has sparked significant debate. The government, recognizing the need for a revision of the social security system, is preparing new regulations for the near future.

Speaking to Turkish publication Turkiye Gazetesi, Guler said: “We will undertake a comprehensive study to update the retirement system. We are not yet familiar with the technical details and need to conduct impact analyses. There are examples from developed countries.”

“Currently, we’re trying to sustain this by continuously transferring resources from the budget to the retirement system, which is not a wise approach. We need to use budget resources more efficiently, in other areas.”

He further said that the retirement system should be fairer and more sustainable.

“The number of premium days, the amount of premiums paid, and retirement age are all very important factors. In developed countries, people don’t retire at 45-50, but in our country, they do. We need to adjust this to a more realistic basis in terms of age, premium amounts, and duration,” he added.

As efforts to reform the social security system move forward, regulations are expected to include significant changes.

These may involve reducing the 9,000-day premium requirement for traders to 7,200 days. Additionally, providing premium support and compensation rights to housewives could be part of the broader social security reform in the new term.