Personnel BES Transactions, Retirement period is not an old age period as most of us think, on the contrary, it is a period to be spent in an active and healthy manner after working life. You can do many good things that you postponed due to working life during retirement.
In this period, it is in your hands to live well and realize what you postponed without lowering your living standards. The income you will receive from public social security systems during your retirement may not be sufficient to maintain your standards. At this point, individual retirement provides you with additional income.
Personnel BES Transactions
Personnel BES Transactions, Private Pension System is a system designed for you to save for your retirement period. With the regular contributions you will make throughout your working life, you can maintain your current living standards in your retirement period.
The contributions you deposit in the Private Pension System are valued in pension mutual funds managed by expert portfolio managers. Your savings grow like a snowball with the effect of each contribution you invest. The system is not suitable for short-term investment due to both the construction of pension mutual funds and the snowball effect.
In the new period, the advantages of the system were increased with the state contribution. Thanks to the state contribution, 25% of every contribution you make is deposited into your state account. Moreover, you do not need to be an income tax payer to take advantage of this advantage.
What is the Individual Pension System (BES)?
The Private Pension System aims to provide you with an income that you can maintain during your retirement, by contributing to the earnings you earn before retirement. It may not be possible to maintain the standard of living you had while you were working, only with the pension you receive from Social Security Institution. . To meet this need, the Individual Pension System (BES) comes into play. PPS, which is not an alternative but a complement to the compulsory social security system; It aims to increase your welfare level by providing you with additional income during your retirement.
What Age Does the BES Cover?
Anyone who is over the age of 18 and has the capacity to act can have the opportunity to save by applying to the Private Pension System. Even if you do not have a regular income, you can start saving for your future by joining the Private Pension System. You can access special retirement benefits by choosing the most suitable ones among the individual pension products created for different needs. You can benefit from a variety of services that can secure your family as well as yourself, without paying any fees. Individual retirement conditions in order to qualify for retirement are to stay in the system for at least 10 years and to be 56 years old.
Private Pension System
Individual Pension System (BES) is a private pension system that allows individuals to save during their working life in order to spend the retirement period comfortably, and provides an additional income to their retirement income as a complement to the social security system.
In this way, you get a second retirement right, and you can maintain your standard of living during your active working period during your retirement periods.
The Private Pension System offers advantageous and various options for your individual savings. Your savings are directed to the funds you choose within the plans you choose in line with your risk preferences. Funds are managed by experts.
What are the Advantages of the Private Pension System?
State Contribution
An amount equal to 30% of the contributions you have deposited in your private pension is added to your pension account as a state contribution. The upper limit of the state contribution is calculated according to the annual minimum gross wage. A state contribution of 25% will be paid to the contributions paid until the effective date of the law, including the change in the State Contribution rate, and 30% to the contributions paid after the law comes into force.
State Contribution in BES – Working System of State Contribution Application
The Law on Making Amendments to the Private Pension Savings and Investment System Law and Some Laws and Decrees was published in the Official Gazette on 29/06/2012. Thanks to the new legal regulations within this scope, the Private Pension System has gained a structure that is directly encouraged by the state and that all participants can benefit from this incentive more effectively.
It is the support payment that the state will make to the relevant accounts of all private pension participants at a certain rate on a monthly basis, as of 01.01.2013, in order to encourage Private Pension. The state contribution rate, which was determined as 25%, was determined as 30% with the amendment in the Law No. 4632.
Example: For a participant who deposits 100 TL, the state will deposit 30 TL to the participant’s account.
The upper limit of the state contribution is calculated according to the annual minimum gross wage. A state contribution of 25% will be paid to the contributions paid until the effective date of the law, including the change in the State Contribution rate, and 30% to the contributions paid after the law comes into force.
However, participants who were in the system before 29 May 2012 and who terminated a pension contract within 2 years as of 29 June 2012 by collecting their savings will not be able to receive State Contribution until 31 December 2014.
Investment Discipline
Considering that you will want to meet your cash needs and maintain your standard of living during your retirement, it will be beneficial to make long-term savings.
With the Individual Pension System, the monthly, quarterly, 6-monthly and even annual shares accumulate on your behalf until you retire. Moreover, if you experience financial difficulties, you can take a break until you stabilize your situation, re-determine the contribution you have invested, or even change the pension company where your investments are evaluated.
Supporter of Social Security Institution
Whether you are a member of Bağ-Kur, Pension Fund or SSK, you can save in the Private Pension System throughout your working life. When you retire, the income you will receive from the Private Pension System in addition to the income you will receive from these institutions will provide you with a long and beautiful retirement life where you will “stand on your own feet”.
Different Investment Tools / Professional Fund Management
In the Private Pension System, your contributions are invested in pension mutual funds. Pension mutual funds are funds that invest in many different securities in the financial markets. Asset management companies, which are experts in their fields, evaluate these funds in the most appropriate way according to your needs and expectations.
With the contract you make when entering the Private Pension System, you can choose the funds in which your savings will be invested. Thus, your funds are managed by professional fund managers. You can save in many different pension funds.
Retirement Income
In our country, as in the rest of the world, the income of employees during their active working life decreases when they retire. For this reason, you may need additional income to maintain your current living standards in your retirement. You can provide this additional income by joining the Private Pension System. When you want to use your pension right, you can request payment of all or part of your savings.
