BNP Paribas Cardif General Manager
Cemal Kişmir: "We expect 1 million new participants to join the Individual Pension System, which is gaining more attractiveness in 2023"

The Individual Pension System (BES), which has been increased to 30% with the support of the state contribution, is becoming increasingly attractive. Cemal Kişmir, the General Manager of BNP Paribas Cardif Turkey, states that in the Voluntary BES sector, which made a fast start to 2023, 1 million new participants are expected by the end of the year.

Cemal Kişmir emphasizes that as a company that creates value for its customers, BNP Paribas Cardif Emeklilik A.Ş. is among the top-performing funds in BES with its Technology Sector Variable Pension Investment Fund and OKS Conservative Variable Pension Investment Fund.

The Individual Pension System (BES), which serves as a complement to the Social Security System, stands out from other savings instruments with its important advantages such as incentives, professional fund management services, and transparency. The number of participants in the Voluntary BES, which is increasingly attractive with the support of government contributions, is rapidly increasing. The sector offers a variety of funds suitable for every risk level with different fund options, including high-yield funds that provide high returns by 2023. BNP Paribas Cardif's "Technology Sector Variable Pension Investment Fund" ranks first among these funds with the highest returns and has an annual return rate of 51.2% as of March 28. BNP Paribas Cardif aims to strengthen its share in the Individual Pension System, which is expected to have 1 million new participants by the end of the year.

BNP Paribas Cardif Turkey General Manager Cemal Kişmir made important assessments about the sector and said, "While the number of participants ranged between 6.8 million and 7 million between 2018 and 2020, there has been a significant momentum in 2021 and 2022. Several important regulations, such as the inclusion of young people and children under the age of 18 in the Individual Pension Law, the implementation of the Individual Pension Fund Trading (BEFAS) platform, the increase of the government incentive contribution from 25% to 30%, and the increase in the right to change funds have contributed to the growth of the sector."

With the support of state contributions, the appeal of Voluntary BES is increasing and it has made a strong start to 2023. According to the EGM data, the Individual Pension sector, which has a fund size of 420 billion TL and 8 million participants as of March 2023, is expected to reach a fund size of 500 billion TL and 9 million participants by the end of the year.

Cardif ranks among the best-performing funds with its "Technology Sector Variable Retirement Investment Fund"!

Cemal Kişmir emphasized that the most important issue valued by participants in BES is the successful management of their savings in a reliable and profitable manner in the long term and said "Our main strategy as BNP Paribas Cardif Turkey is to be a company that creates value for its customers. We offer our participants individual pension fund management through TEB Asset Management, an experienced and innovative company in the Portfolio Management sector. We closely monitor the management of the funds we offer to our participants and ensure that our users are regularly informed about fund returns. As a result of all these efforts, we are among the top-performing funds in BES. Since the beginning of 2023, we have maintained our top ranking. Our BNP Paribas Cardif Emeklilik A.Ş. Technology Sector Variable Pension Investment Fund is ranked fourth among all funds in the market. In addition, our BNP Paribas Cardif Emeklilik A.Ş. OKS Conservative Variable Pension Investment Fund, included in the automatic participation BES system for employees, is ranked third among the top-performing funds."

Cemal Kişmir stated that as BNP Paribas Cardif, they have completed all their planning and preparations to increase their share in the growing Voluntary BES sector and said "We are experiencing significant growth in both the number of participants and the size of the funds, parallel to the growth in the sector. We also support this growth with sales and marketing campaigns that encourage our customers to enter the system. All our projects and investments are planned to increase customer value. Our campaigns in this direction will continue in 2023 as well. We will focus on efforts to elevate the concept of customer value in our products and services, by adopting an approach that centers around the needs and demands of all our customers served through different channels. As a result of all our objectives, we aim to reach 240,000 contracts and a BES fund size of 15 billion TL in 2023."

What should BES participants pay attention to?

aIn his statement, BNP Paribas Cardif Turkey General Manager Cemal Kişmir also provided special recommendations to voluntary pension plan participants, saying:

"We recommend that individual retirement plan participants select fund distributions suitable for their risk profile when making savings and investments within the pension system, and make changes to the fund distribution in their plans, especially in response to economic changes, being aware of their right to change funds up to 12 times a year. While relatively high-risk fund categories are recommended for young participants who are new to the system, we suggest minimizing risk as retirement approaches.

In addition, I recommend that participants who have fulfilled their retirement rights in the Individual Retirement System continue to take advantage of the state contribution benefit to the maximum extent possible by evaluating their conditions and needs. If they have left the workforce, they can still benefit from the system's secure and high returns, as well as the state contribution advantage. I also want to point out that with Retirement Income Plans, they can receive their pensions in the most suitable way for themselves within a regular repayment process."
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