Auto-Enrollment System, which enables individuals to make savings during their active working lives and use those savings during their retirements, reached 5 million participants and a fund size of approximately 5 billion TL at the end of 2018. As a company that keeps supporting the growth of this system through several projects, Allianz Sigorta has extended its discount campaign until the end of April. Within the scope of this campaign, Allianz offers advantageous group complementary heath insurance plans for companies that decide to work with Allianz for auto-enrollment process. All companies that have joined the system via Allianz in 2017 and 2018 can enroll in this campaign and benefit from discount rates up to 25 percent on their first group insurance purchases.
5 million people participated in the system in two years
Taylan Türkölmez, General Manager of Allianz Yaşam ve Emeklilik and Allianz Hayat ve Emeklilik companies, stated that 8.5 percent of Turkish population was above the age of 65 which continued to increase over time. He added: “Within the Turkish social security system where every two members of the workforce finance one pensioner, those members of the workforce can receive only 60 percent (on average) of their current salaries when they retire. Therefore, it is of vital importance to save in a disciplined manner in order to secure your future. The solution is in individual pension and auto-enrollment systems.”
During 2018, Auto-Enrollment System maintained a continuity rate of 32 percent with 5 million 193 thousand 288 participants in total, out of which 1 million 276 thousand 638 joined from the public sector and 3 million 916 thousand 650 joined from the private sector. Türkölmez highlighted that the exit rate stood at 70 percent at the end of system’s first year, and added: “14.5 million people joined the system in two years; but only 5 million people decided to stay as of 2019 year-end. However, despite this high withdrawal rate, the fact that 5 million people chose to make savings within these two years is of great significance. 2019 will be the last phase of auto-enrollment system, during which 200 t0 400 thousand companies with 5 to 9 employees will join. Therefore, we estimate the market to reach 7 million participants and a fund size of 7.4 billion TL at the end of 2019.”