Page 20 - Turkinsurance Digital Magazine

18 at a glance

Individual pension system serves to future of Turkey through today’s savings

GDPs on average, but was only 2.6 percent for Turkey. Un-
derlining that auto-enrollment is the right system for Turkey,
Türkölmez said employer contribution was a vital part of sec-
ondary pension plans all around the world. He added that the
system should be embraced by all employers and all stake-
holders including syndicates, in order for the auto-enrollment
system to reach the desired participation levels: “Employer
contribution should be a part of the system, if we want to carry
auto-enrolment to higher levels.”
Göçer: “Participants should monitor the performance of
pension funds”

Within the scope of Turkish Capital Markets Summit, Insur- Burak Ali Göçer, Chief Executive Officer of Garanti Pension
ance Association of Turkey (TSB) organized a panel named and Life I.C. and Vice President of the Executive Board at
“In What Ways Would Private Pensions Serve Better for the Insurance Association of Turkey, stated that individual pen-
Future of Turkey?”
sion system was perfectly suited for savings and a comfortable
retirement period. He defined individual pension as a highly
Moderated by Cem Kılıç, a lecturer, commentator and col- attractive system with 25 percent state support. Stating that
umnist; the panel was participated by Burak Ali Göçer, Chief people can save even with small amounts of money in the the
Executive Officer of Garanti Pension and Life I.C. and Vice system; Göçer said those savings are invested by professional
President of the Executive Board at Insurance Association of asset managers, but participants were also responsible from
Turkey; Taylan Türkölmez, General Manager and Chairman the returns of their own savings. Therefore, according to
of the Executive Board at Allianz Life and Pension; and Te- Göçer, it is of vital importance for participants to monitor the
vfik Eraslan, CEO of İş Asset Management and Board Mem- performance of funds where their savings are invested. He
ber of Turkish Capital Markets Association (TSPB).
added as follows: “Pension fund returns are really very valu-
able. If you look into your total savings, you can see that two
Turkish population is getting older fast thirds of your total savings come from investment returns. You
can switch your pension funds 6 times a year. Unfortunately,
Taylan Türkölmez, General Manager of Allianz Life and Pen- share of participants who benefit from this advantage is only
sion and Chairman of the Board at Pension Monitoring Center 5 percent.”
(EGM), stated that average life expectancy increased in Tur-
key; underlining that people should start saving today for their Underlining that it is important to enter in the system at young
retirement period, which has already been prolonged as a re- ages, as the accumulated savings increase in parallel with the
sult of the aging population. Türkölmez also mentioned the time in the system, Göçer said: “The earlier you enter in the
population projection research which was prepared by TÜİK: individual pension system, the better. That’s why, we want to
“Today, average age of the population is 32, which is expected bring citizens under 18 years old into the system as well.”
to increase up to 43 by 2070. Ratio of old population over 65
currently stands at 8.5 percent compared to overall popula-
tion. It is estimated to reach 23 percent by 2070. Right now,
we take pride in having a young population. However, we are
face to face with a 50-year term where the rate of old popula-
tion will increase, young population will decrease and average
life expectancy will be extended.”

Türkölmez: “Auto-enrollment is supplemental to Social
Security”

Reminding that the society should be ready for this rapidly
changing demographic structure, Türkölmez said developed
countries had been saving since 1900s for their retirement
periods. He stated that the savings accumulated in the pen-
sion funds of OECD countries equaled to 50 percent of their