Abstract:

Choice of retirement plan determines one’ choice on retirement income and its financing. Once one decides about a retirement plan, one has to abide by it. Early in one’s career, one may be in a low-paying job, struggling to make ends meet. Consequently, the individual may feel that he or she does not have enough income. Individual Pension System (IPS) is an additional income for retirement. This study aims to analyze the factors affecting the decision to join IPS in Bursa province in Turkey. A questionnaire was administered using simple random sampling to 350 people asking what their plans were, what they were doing at the moment for retirement and what they were thinking about IPS. Four factors have been found to be important for the decision to join the IPS. These were marital status, risk-taking character, financial knowledge and investment/spending ratio. The findings of the study demonstrated that an individual, who had the above-mentioned features, had a possibility of approximately 76% to join IPS.

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