Abstract:

The main purpose of the individual pension system is to increase the level of welfare of individuals during retirement The Law No 4632 regulating individual pension system provided individual and corporate incentives to enable participation in the system However because these incentives were unsufficient and the problem arising from the application of the Law No 4632 the need to rearrange the system arose Therefore individual pension system was revised by the Law No 6327 With the regulations imposed by the Law No 6327 practice of discounting the individual pension contributions from the taxable income was terminated state contribution has been introduced Furthermore it was terminated that all payments made to those leaving the system was rated as an earning on movable assets In this study individual pension system practiced for nearly 10 years in Turkey will be discussed and the amendments made by the Law No 6327 will be explained along with the reasons Keywords: Individual pension system the state contribution tax deduction

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