Exciting News for Retirees: Double Salary Opportunity with TES Operational this Year!
The second retirement system in Turkey, known as the Supplementary Retirement System (TES), is set to be further developed, offering retirees the opportunity to receive double payments upon retirement. This system, which will run alongside the existing Social Security Institution (SGK), will provide retirees with additional financial support.
Muhammet Bayram, a Certified Public Accountant and Economist, explained to Milliyet.com.tr that the TES will not replace the SGK but will serve as an alternative retirement system. The TES will become mandatory for new hires and gradually introduced to current employees until their retirement.
All employees will benefit from the TES, which differs from the existing Automatic Participation BES system. While BES allows individuals to contribute to a fund voluntarily, TES requires mandatory premiums paid by the employer in order to secure a second retirement income.
Employers will be responsible for transferring funds to their employees’ TES accounts on a monthly basis, similar to paying insurance premiums. This system aims to alleviate any financial burden on employers while providing additional security for retirees.
There will be no age requirement for TES, ensuring that all individuals have the opportunity to secure their retirement income. Retirees can choose to receive their funds either as a lump sum or in monthly installments, offering flexibility in managing their retirement finances.
Overall, the introduction of the TES system is expected to significantly contribute to the welfare of retirees in Turkey, providing them with an additional source of income during their retirement years.
