Abstract:

Today, in Turkey, the preference and growth of the interest-free pension plan and funds, in addition to conventional (fee-based) plans and products in the voluntary individual pension system and in particular the automatic participation system, is important. The aim of this study is to evaluate and analyze the interest-free unitary pension, which is an important element of the life and retirement branch of the insurance sector. The work data has been obtained from the official website of the Pension Supervisory Center and the Capital Market Board. The SWOT analysis method is used. According to the findings of the study; in Turkey, the strong side of interest-free individual retirement is that individuals in the general sense have gained importance of the need for private retirement along with the public pension system and that individuals with interest sensitivity are increasingly demanding these products. As a weak and open area for development, the interest-free pension funds have more limited investment options than the interest-based system. As opportunities, the development potential of the pension system can be highlighted, the market is still in the growth stage. On the other hand, the threat that the system may face is the risk of a decrease in the growth rate of the number of new participants (individual investors) entering the system depending on the economic circumstance.

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