Abstract:

In recent years, budget deficits and financing problems have been experienced in the social security system in Turkey as well as in the rest of the world. In order to alleviate the financial burden in the social security systems and to minimize the existing problems in question, states are resorting to practices that promote private pension programs and the private pension system. The Turkish private pension system is a financial mechanism that is implemented as a complementary function to the social security system. The private pension system contributes to the development of capital markets by increasing savings in the economy, thus supporting economic stability. For this purpose, many incentives have been implemented in the country to encourage individual retirement plans for the society. State subvention is one of the individual retirement incentive practices that started to be implemented in 2013. In the study, the effect and role of the state subsidies on the Turkish private pension system has been searched. In this direction, as a result of the literature review and the analysis of the relevant data, it has been determined that the number of participants, contribution amounts and fund size in the system increased higher than the previous years in the first years after 2013, when the state contribution came into effect.However, the state subventions could not create the expected effect in the following years.

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