Turkish individual pension system: from voluntary basis to automatic enrolment

This article discusses the introduction and development of the Individual Pension System (IPS) in Turkey within the framework of neoliberal pension transformation throughout the world. The article attempts to analyse the thirteen-year experience of the IPS from a critical perspective in line with the proliferation of private pension accounts in the countries of the South by the impact of International Financial Institutions (IFIs). The author argues that, unlike the other countries of the South, a mandatory private pension system could not be achieved in Turkey due to economic, social and political conditions. In other words, Turkish pension system is still characterised by a large public pillar. Nevertheless, the ruling government has initiated automatic enrolment in order to make the system an efficient pension pillar instead of a short-term saving model. It also aimed to provide a regular flow of funds to financial markets.