Assessing a minimum pension guarantee for the voluntary IPS in Turkey


ŞAHİN Ş. , Elveren A.

INTERNATIONAL SOCIAL SECURITY REVIEW, cilt.64, sa.3, ss.39-61, 2011 (ESCI İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 64 Konu: 3
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1111/j.1468-246x.2011.01401.x
  • Dergi Adı: INTERNATIONAL SOCIAL SECURITY REVIEW
  • Sayfa Sayıları: ss.39-61

Özet

The returns from individual account pension plans are subject to fluctuations in capital markets. This increases income uncertainty for the beneficiary and exposes individuals to the risk of fluctuations in the economy in general and the stock market in particular. A minimum pension guarantee is a way to avoid this pitfall by providing a minimum annuity regardless of the actual investment performance of individual accounts. In this article, we present a cost analysis of a minimum benefit guarantee mechanism for the voluntary Individual Pension System in Turkey. We examine the cost estimates and the probability of providing guaranteed payments under various economic and demographic assumptions.