Insurance Association of Türkiye (TSB): ''The state contribution continues, and BES maintains its strength''

The Insurance Association of Türkiye (TSB) emphasized that the state contribution in the Individual Pension System (BES) continues strongly at a rate of 20%, stating that BES remains one of Türkiye’s strongest long-term savings and investment instruments with 18 million participants and a fund size approaching TRY 2.2 trillion.

The Insurance Association of Türkiye (TSB) made an assessment regarding the reduction of the state contribution rate in the Individual Pension System (BES) from 30% to 20%, emphasizing that the system has preserved its strong structure and sustainability.

In the statement made by the Insurance Association of Türkiye (TSB), it was noted that BES, with its 22-year history, has become one of Türkiye’s most successful structural reforms. It was highlighted that when voluntary BES and the Automatic Enrollment System are evaluated together, the system has reached approximately 18 million participants and a fund size approaching TRY 2.2 trillion. It was stated that these figures demonstrate that BES is no longer a structure growing solely through incentives, but has evolved into a deep-rooted, permanent, and strong savings and investment ecosystem.

“The state contribution has not ended; it continues strongly”

In the statement, it was emphasized that the regulation regarding the state contribution rate should be evaluated within the overall integrity of the system. It was noted that the approach summarized in the public as “the state contribution is decreasing” does not reflect the full range of advantages offered by BES, and the following statements were included:

“The state contribution continues strongly in the new period at a rate of 20%. When compared with international practices and alternative investment instruments, this rate still represents a quite high and meaningful level of incentive.”

The Insurance Association of Türkiye (TSB) also recalled that with the increase in the gross minimum wage, the upper limits of the state contribution have also risen, emphasizing that the regulation was implemented as a balancing step, taking into account the economic environment, public budget balances, and the scale the system has reached.

“Vested rights are protected; full confidence in the system”

In the statement, it was particularly emphasized that there is no change regarding the existing savings of BES participants:

“Participant savings and accrued state contributions are secured. BES continues its path with determination on the basis of trust and stability.”

“BES is a strong investment alternative”

The Insurance Association of Türkiye (TSB) drew attention to the fact that the advantages of BES are not limited solely to the state contribution and also addressed fund performance. In the statement, it was noted that thanks to increasing fund diversity, professional fund management, and a long-term investment perspective, BES has become a strong investment alternative.

It was stated that over the last five-year period, the weighted average return of BES funds was approximately 827%, and that this performance was above inflation and all investment instruments other than gold. It was also emphasized that in the last year, the fund size of BES participants increased by 80%, and that participants could achieve higher returns through timely fund allocation changes, highlighting the importance of financial literacy in this regard.

“BES contributes to macroeconomic stability”

In its statement, the Insurance Association of Türkiye (TSB) emphasized that BES plays a strategic role not only for individuals but also for the Turkish economy:

“While BES enables individuals to build long-term and secure savings for their retirement periods, it also makes a significant contribution to macroeconomic stability by creating a permanent source of funds for capital markets and the real sector. As the Insurance Association of Türkiye (TSB), we would like to underline that the state’s support for BES continues strongly. With its transparent infrastructure and continuously evolving structure, BES will continue to serve as a long-term savings and investment assurance.”