Gelisim News

New regulations in PPS to attract savers!

In the Private Pension System (PPS), five different regulations that are planned to be implemented in the coming days will attract the participants. Speaking about these changes, which will create significant leaps, Istanbul Gelisim University, Faculty of Economics, Administrative and Social Sciences Logistics Management Faculty Member Assoc. Prof. Hakan Yıldırım states that as a result of the revision to be made for the relevant law, both the continuity of the existing participants will be ensured and new participants will be encouraged.

GOVERNMENT CONTRIBUTION TO BE INCREASED TO 30 PERCENT

The Private Pension System, which is considered an important savings tool in countries with developed economies, has now started to be seen as an important savings tool for our country as well. Important arrangements are made in the Private Pension System, which has gained the trust of investors, especially with the state contribution. Making statements on the subject, Assoc. Prof. Hakan Yıldırım says, “When the last regulation, which is planned to be put into effect in general terms, is examined, state contributions can be received in the following years for contributions exceeding the annual state contribution limit, and this situation will provide significant advantages for savers. In particular, the state contribution, which is planned to be increased from 25% to 30%, can play a key role in increasing the trust of savers in this system. Additionally, another important regulation is that participants can have the opportunity to receive partial payment. The participants will be able to withdraw 50% of their savings when they need cash, without having to exit the system completely with this change.”

The five different arrangements planned to be made are as follows;

• The state contribution will be increased to 30%, and 50% of the savings will be converted into cash.
• Special opportunities will be provided for people over the age of 45 who cannot benefit from AES (Automatic Enrollment System).
• PPS savings can be assigned.
• It will be possible to withdraw cash without leaving PPS.
• In the following years, it will be possible to give state contribution in collective contribution payments.

Assoc. Dr. Hakan Yıldırım also emphasizes that the Private Pension System will continue to maintain its feature of being a widespread savings tool.