Private benefits, fiscal costs and economic resource costs of the private defined contribution pension systems in Turkey

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Jenkins G. P., Olasehinde-Williams G. O., Amel R.

Turkish Studies, cilt.24, sa.1, ss.150-176, 2023 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 24 Sayı: 1
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1080/14683849.2022.2094783
  • Dergi Adı: Turkish Studies
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, Historical Abstracts, Index Islamicus, MLA - Modern Language Association Database, Political Science Complete, Public Affairs Index, Sociological abstracts, Worldwide Political Science Abstracts
  • Sayfa Sayıları: ss.150-176
  • Anahtar Kelimeler: Private pensions, Turkey, pension administration costs, economic resource cost
  • İstanbul Ticaret Üniversitesi Adresli: Evet

Özet

This study addresses economic issues associated with the private defined benefit pension system in Turkey. Findings show that the new Turkish pension scheme has generated significant welfare improvements for individual investors, but at a loss in tax revenue and an economic resource cost to the country. If the bank-administered Tax-Free Contribution Accounts and/or Tax-Free Savings Accounts, similar to those operating in Canada, were adopted in Turkey and the requirement of holding government securities was lifted, such schemes would provide contributors with benefits similar to what they currently enjoy under the new Turkish scheme, while eliminating the economic resource costs of administration and improving their net fiscal impact.