Abstract:

Retirement savings are among the important financial resources that countries have. In addition, the individual pension system is an effective tool used to efficiently manage these savings and direct them to investments. However, since participation in the BES is usually voluntary, the coverage rates of these systems cannot reach the expected levels. At this point, the application of automatic participation in the individual pension system ensures an increase in the coverage rate of BES by automatically incorporating employees into the system. In the study, individual retirement automatic participation application was studied with the general lines and the application in Turkey was compared with the selected countries of the world. Econometric analysis has also been carried out on the basis of factors affecting the size of the BES funds/GDP ratio in the countries with the application of automatic participation. The results of the model have shown that there is a positive and strong link between the time spent in the automatic participation application and the BES fund size/GDP ratio. In this context, the application of automatic participation in the individual pension system is an important savings tool that can enhance both the current and future economic well-being of Turkey. Although significant achievements have been achieved in the system at the end of the last two years, the implementation in the country shows a performance far behind the potential. The policies to be implemented in the new period should be determined and implemented in the framework of a long-term strategic plan, taking into account the opinions and recommendations of all stakeholders in the system.

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