Abstract:

In recent years, the extension of the lifetime of individuals has increased the health and retirement spending of the social security system. The increasing burden on the public budget, the social security system has entered the financial crisis over time. This has led to some structural reforms that can solve the problems of the social security system. Those structural reforms aimed at strengthening the existing public pension system and then developing a complementary individual pension system in addition to the public pension system. Thus, the sharing of social risks by the individual pension system has alleviated the financial burden of the public pension system. Participation in the individual pension system based on savings is voluntary. The individual pension system allows participants to make long-term savings and helps them increase their income during their retirement periods. The contributions of participants to the system are converted into investments by retirement companies, which provides national resources to the country’s economy. In the study, in light of the data obtained from the Pension Surveillance Center, the importance of the individual pension system was sought to explain in terms of social security.

Abstract:

In recent years, the prolongation of life span of individuals has increased health and retirement expenditures of the social security system. The social security system, which has increased its burden on the public budget, has entered into a financial crisis over time. This situation has brought up some structural reforms that can solve the problems of the social security system. With the structural reforms in question, it was aimed to strengthen the existing public pension system then to develop a complementary individual pension system in addition to the public pension system. Thus, the sharing of social risks by the individual pension system mitigated the financial burden of the public pension system. Participation in individual pension system based on savings is voluntary. The individual pension system enables participants to make long-term savings and helps to increase their incomes during retirement periods. The contributions made by the participants to the system are converted into investment by the pension companies and this status provides the national economy with national resource. In the study, in the light of the data obtained from the Pension Monitoring Center, the importance of the individual pension system is tried to be explained in terms of the social security.

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