Everything you have achieved in life, you have made an effort for them. Auto enrolment gives you the opportunity to plan your future without getting tired. The auto enrolment system that is actively used in many countries like the USA, England, New Zealand, Italy and Chile has finally come into effect in Turkey as of January 1, 2017! So, what is this auto enrolment? You are at the right place to learn all the details.
All public and private sector employees younger than 45 years are automatically enrolled to the auto enrolment system by their employer, without regarding their current private pension contracts.
Thanks to the auto enrolment system, you can transfer 3% of your income which is subject to premium, to the private pension company each month through your employer.
In addition to automatically saving, you can take advantage of the 25% government contribution and continue to add value to your savings with the auto enrolment. Moreover, the government contribution to the auto enrolment is not effected by the current contracts of employees that have already participated in the Private Pension System. So, you can get separate government contributions from both your auto enrolment contract and your current private pension contracts and take maximum advantage of the government contribution.
The auto enrolment system does not charge any fees except the fund management fee and you are free to withdraw within the first 2 months. However, if you want to continue to automatically gain without exercising your right to withdraw, the system awards you once again and gives you the opportunity to receive TRY 1,000 of government contribution, in accordance with the vesting conditions*.
Government contribution is not just limited with these in the automatic enrolment system. Employees that have qualified to retire by fulfilling the 10-year and 56 years of age conditions, receive an additional government contribution of 5% of their savings if they don't opt for receiving a lump-sum and acquire at least 10 years of wage income insurance.
Why Garanti BBVA Penion?
Government Contribution Multiplies Your Savings!
Employees who have contracts in the current private pension system will receive an additional government contribution from their auto enrolment system plans!
Participants who don't exercise their right to withdraw within the first two months of the plan, will be committed an additional TRY 1,000 government contribution and will be paid in accordance with the vesting conditions.
Employees that have qualified for retirement by fulfilling the 10-year and 56 years of age conditions, receive an additional government contribution of 5% of their savings if they don't opt for receiving a lump-sum and acquire at least 10 years of wage income insurance.
*According to Pension Monitoring Center’s data dated December 14, 2018, Garanti BBVA Pension is ranked 1st in number of private pension participants.