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The Turkish government is reportedly preparing to lower the rate of state contribution in the country’s Private Pension System (known locally as BES) from 30% to 20%, in a move expected to take effect in early 2026.
The adjustment will apply to both existing and newly opened accounts following the publication of an updated regulation, likely in January, according to reports in Turkish media.
Sources cited by Turkish daily Milliyet reported that if the directive is published, contributions made from that date onward will be subject to the revised 20% rate, while gains already accumulated under the 30% scheme will remain unaffected by the change.
The state contribution rate in BES was raised from 25% to 30% in 2022, partly as a response to elevated inflation, which at the time was running above 60%. With consumer price growth now gradually declining toward the 30% range, authorities argue that the current level of public support has become disproportionate.
The shift is intended to align with the changing inflation environment, as officials argued that a 20% contribution rate would not result in losses when measured against inflation. They also stated that the adjustment is aimed at easing the fiscal burden of pension incentives while preserving positive real returns for participants.
The Private Pension System is a voluntary, government-supported retirement savings program aimed at supplementing the country’s public social security scheme. Launched in 2003, BES allows individuals to make regular contributions to privately managed pension funds, which are then invested in various financial instruments based on participants' chosen risk profiles.
Participants can access the accumulated funds, including the state contribution and investment returns, upon reaching retirement age or after remaining in the system for at least 10 years and turning 56.
In addition to serving as a domestic retirement tool, the Private Pension System (BES) also offers an investment option for foreign nationals seeking Turkish citizenship. Under current regulations, foreigners can become eligible for citizenship by committing at least $500,000, or its equivalent in Turkish lira, to a BES account, provided the investment is maintained for a minimum of three years.
As of the latest available data, the combined fund size of Türkiye’s Private Pension System (BES) and the Automatic Enrollment System (OKS) has reached ₺2.15 trillion ($50.04 billion). Of this amount, ₺1.93 trillion was accumulated through contributions made by participants, while ₺228.6 billion was provided by the government under its matching support scheme. The total number of individuals enrolled in both systems now stands at approximately 17.9 million.
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