Why invest in private pension system?
The average period of time one spends as a retiree is 20 years.
Twenty years is long enough for you to need additional income at some stage.
In addition, your pension savings will be bolstered by tax advantages.
Trying to control day-to-day expenditures, we often neglect to take our future incomes and expenses into account. However, average life expectancy is increasing. Therefore, the period of time we are expected to spend as retirees is increasing.
The period of time you will likely spend as a retiree is 20-25 years. This is almost as long as your occupational life. Making savings during your working years is now essential to ensure that you can maintain your lifestyle and avoid financial troubles throughout retirement.
What is the private pension system?
The Private Pension System is a special system that is intended to ensure additional income for your days of retirement with long-term savings.
The Private Pension System is not an alternative to Social Security System but complements it; you can enter into this system even if you are registered to any social security institution and ensure having a second income so that you may maintain your lifestyle in your retirement.
The Private Pension System is based on the principle of the long-term investment of small amounts of regular savings you may make throughout your occupational life. To that end, it is configured to cover tax exemptions that promote making long-term savings for 20-30 years. Using the system for short-term savings will result in the forfeiture of several advantages.
The pension companies are supervised on regular basis by the Undersecretariat of Treasury, the Pension Monitoring Center, Capital Markets Board and independent audit firms.
The fund assets of participants are guaranteed by the government as they are kept in accounts opened with Takasbank (ISE Settlement and Custody Bank Inc.) and not within the financial structure of pension companies.