Private Pension System (BES) regulations and state contribution changes

The Private Pension System (BES) is being highlighted as a method for individuals to supplement their Social Security Institution (SGK) pensions. Unlike SGK, which is based on premium days, BES retirement eligibility is determined by staying in the system for at least 10 years and reaching the age of 56.

Participants can choose to receive their savings as a lump sum or convert them into regular income through methods such as programmed repayments or annual income insurance. Notably, individuals who are already retired from SGK are also permitted to participate in BES to manage their savings.

Regulatory changes are set for 2026. Following a regulation effective January 7, 2026, the state contribution for contributions made in Turkish Lira will be adjusted to 20%, down from the previous 30% rate. Further updates regarding automatic enrollment and various transaction headings are expected to follow through 2026 circulars.