Abstract:

The increase in the share of the elderly population in the total population and populist policies have caused social security disadvantages worldwide. At the same time, long-term funds have been an obligation for a high growth rate. For these reasons, especially with liberalization in the economy, the states use the Individual Pension System The purpose of the study is to study the Individual Pension System and its effects on the savings and capital markets in Turkey. In addition, the savings levels in Turkey will be interpreted compared to other countries and the impact of savings levels in Turkey will be discussed. In the empirical analysis, the Johansen Integration Test and Causal Side were applied to find long-term relationships, while the Pairwise Granger Causal Test was applied to find long-term relationships. The results of empirical analyses show that the total amount of funds of the participants in the Individual Pension System has a long-term positive impact on private sector bonds and stock markets. The Pairwise Granger Causability Test shows that the total amount of participating funds in the Individual Retirement System is causative to the market value of private sector bonds and that the Bist100 index causes the total amount of funds in the Individual Retirement System.

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