Özet:

This study aims at categorizing, computing and analyzing fees and costs in Turkish Individual Pension System. To this end, net real returns after all costs were computed and these returns were compared with the disclosed fees and returns. Generally in practice, only fund management fees are taken into consideration for calculating net returns and with this method net annual average (geometric) return of the system is calculated as 2.01% for the 2008-2014 period. However, the results of this study show that when other “pension plan costs” are taken into account, net annual average return decreases to 0,19%. The study also demonstrates that for generating 0.19% average net return, pension companies received 2.34% fee on average in 2014. Thus, with this return and fee level, Turkish Individual Pension System Pis not sustainable without Government incentives. Keywords : Turkish individual pension system, Turkish private pension funds, pension fees, pension returns, pension regulation. JEL Classification : G22, G23, G28

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