If you are seeking a comfortable future, Private Penson Insurance by Kuveyt Türk will offer you the best pension plans. With the PPI system, you can build up savings and reap the benefits in your retirement.
About the Private Pension System?
Private Pension System is a special savings system that provides you an income during your retirement. Through this system, you can have extra savings at the end of your working life in addition to your entitlement to the public social pension system.
Who Can Apply for Private Pension System?
Anyone with the capacity to act can apply for the Private Pension System. There is no age range or insurance requirement. Plus, thanks to the regulation dated May 20, 2021, people who do not have the capacity to act can also be included in the Private Pension System through their legal representatives.
Details on Private Pension System
The Private Pension System is the key to securing a comfortable retirement. Here are the key details you should know about the system:
- When you join the Private Pension System, you can benefit from the state contribution, provided it does not exceed 30% within a calendar year.
- Your limit account is determined on a user basis and customized for you.
- Housewives and non-working people who are included in the system and do not pay taxes to the state are also entitled to make contributions.
- You are not covered by the state contribution within the first 3 years of entering the Private Pension System. You can receive 15% of the contribution in your third year in the system, 35% at the end of your sixth year, and 60% when you complete your 10th year. You can benefit from the full state contribution when eligible to retire.
- If your employer pays contributions on your behalf, there is no state subsidy for these contributions.
- Employers can deduct the contributions they pay for their salaried employees as an expense within the legal limits. The limit is 15% of the wage earned in the month in which the contribution is paid and the annual amount of the minimum wage.
Types of Individual Pension Plans
Economic Pension Plan
Kuveyt Türk's Economic Pension Plan is a special plan with affordable rates of contribution. Following is a list of the main features of Economic Pension Plan:
- You can apply for the Economic Participation Pension Plan for a monthly contribution of TRY 870 or more.
- You can make your contribution payments in quarterly, semi-annual or annual periods.
- You will be eligible to retire when you reach 56, provided that you have been in the system for at least ten years from the entry date.
- There is no entrance fee in the Economic Participation Pension Plan.
- There is no MED on additional contributions in the Economic Participation Pension Plan.
- In case of withdrawal before the end of the fifth year of the contract, a deferred entrance fee is charged. For each contract year, the portion of the amount corresponding to 8.5% of the monthly gross minimum wage to be applied in the first six months of the relevant calendar year, which corresponds to the total amount corresponding to the period until the end of the fifth year of the contract, which has not been collected as management expense deduction and/or interruption deductions and/or advance entrance fee until the date of withdrawal, is deducted from the accumulation as deferred entrance fee.
- While calculating the deduction for the uncollected years, the gross minimum monthly wage (GMMW) in the first six months of the relevant calendar year on the date of withdrawal is taken into consideration.
- A deferred entrance fee is not collected from those who have completed the 5th year of the contract, who leave due to death/disability, or who exercise their right to retirement.
Economic Participation Pension fund expense ratios are as follows:
| Fund Name | Daily Fund Operating Expense Deduction | Annual Fund Operating Expense Deduction | Daily Fund Total Expense Deduction | Annual Fund Total Expense Deduction |
|---|---|---|---|---|
| Katılım Emeklilik ve Hayat A.Ş. Alternative Aggressive Participation Shifting (currency) Pension | 0.0062 | 2.26 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Gold Participation Pension Investment | 0.0029 | 1.06 | 0.0029 | 1.09 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Balanced Participation Variable Pension Investment Fund | 0.0062 | 2.25 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Public Lease Certificates Participation Investment Fund | 0.0052 | 1.88 | 0.0052 | 1.91 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Stock Pension Investment Fund | 0.0062 | 2.25 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Contribution Pension Investment Fund | 0.00095 | 0.347 | 0.00095 | 0.365 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Standard Pension Investment Fund | 0.005151 | 1.88 | 0.005151 | 1.91 |
The management expense rates to be applied on an annual basis as of the effective date of the contract are as follows:
- 7% of the GMMW for the 1st year
- 5% of the GMMW for the 2nd year
- 5% of the GMMW for the 3rd year
- 5% of the GMMW for the 4th year
- 5% of the GMMW for the 5th year
The deduction amounts to be deducted from planned and defined savings cannot exceed the annual and 5-year deduction limits in the current regulation.
Regarding the amount of management expense deduction (MED) to be deducted from savings:
- The first deduction is deducted from the savings in the first year of the contract following the realization of the fund purchase transactions of the contribution.
- In the following years, the deduction amounts defined in the plan are deducted from the savings in the relevant contract year.
- In cases where the deductions to be taken from the savings defined in the plan will cause the balance in the account to fall below TRY 0, the deduction collection is made in such a way that the balance is not reset to zero.
- The uncollected amount is collected when the balance is available within the contract year subject to the deduction.
Additional Management Expense Deduction in the Event of Suspension
The suspension deduction defined in the plan is collected as specified in the regulation. The amount remaining after deducting the monthly total amount (5 TRY) during the suspension period in the relevant contract year as the MED is collected over the accumulation in a way not to exceed the annual and 5-year deduction upper limits.
Special Participation Pension Plan
Special Participation Pension Plan is a profitable pension plan with lower management expenses and affordable contribution rates. The details of the plan are as follows:
- You can apply for Special Participation Pension Plan for a monthly contribution of 3.430 TRY or more.
- You can make your contribution payments in quarterly, semi-annual or annual periods.
- You will be eligible to retire when you reach 56, provided that you have been in the system for at least ten years from the entry date.
- There is no entrance fee in Special Participation Pension Plan.
- There is no MED on additional contributions in Special Participation Pension Plan.
- In case of withdrawal before the end of the fifth year of the contract, a deferred entrance fee is charged. For each contract year, the portion of the amount corresponding to 8.5% of the monthly gross minimum wage to be applied in the first six months of the relevant calendar year, which corresponds to the total amount corresponding to the period until the end of the fifth year of the contract, which has not been collected as management expense deduction and/or interruption deductions and/or advance entrance fee until the date of withdrawal, is deducted from the accumulation as deferred entrance fee.
- While calculating the deduction for the uncollected years, the gross minimum monthly wage (GMMW) in the first six months of the relevant calendar year on the date of withdrawal is taken into consideration.
- A deferred entrance fee is not collected from those who have completed the 5th year of the contract, who leave due to death/disability or by exercising their right to retirement.
Special Participation Pension Plan fund expense ratios are:
| Fund Name | Daily Fund Operating Expense Deduction | Annual Fund Operating Expense Deduction | Daily Fund Total Expense Deduction | Annual Fund Total Expense Deduction |
|---|---|---|---|---|
| Katılım Emeklilik ve Hayat A.Ş. Alternative Aggressive Participation Shifting (currency) Pension | 0,0062 | 2,26 | 0,0062 | 2,28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Gold Participation Pension Investment | 0,0029 | 1,06 | 0,0029 | 1,09 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Balanced Participation Variable Pension Investment Fund | 0,0062 | 2,25 | 0,0062 | 2,28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Public Lease Certificates Participation Investment Fund | 0,0052 | 1,88 | 0,0052 | 1,91 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Stock Pension Investment Fund | 0,0062 | 2,25 | 0,0062 | 2,28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Contribution Pension Investment Fund | 0,00095 | 0,347 | 0,00095 | 0.365 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Standard Pension Investment Fund | 0,005151 | 1,88 | 0,005151 | 1,91 |
The management expense rates to be applied on an annual basis as of the effective date of the contract are as follows:
- 3% of the GMMW for the 1st year
- 1% of the GMMW for the 2nd year
- 1% of the GMMW for the 3rd year
- 1% of the GMMW for the 4th year
- 1% of the GMMW for the 5th year
The deduction amounts to be deducted from planned and defined savings cannot exceed the annual and 5-year deduction limits in the current regulation.
Regarding the amount of management expense deduction (MED) to be deducted from savings:
- The first deduction is deducted from the savings in the first year of the contract following the realization of the fund purchase transactions of the contribution.
- In the following years, the deduction amounts defined in the plan are deducted from the savings in the relevant contract year.
- In cases where the deductions to be taken from the savings defined in the plan will cause the balance in the account to fall below TRY 0, the deduction collection is made in such a way that the balance is not reset to zero.
- The uncollected amount is collected when the balance is available within the contract year subject to the deduction.
Additional Management Expense Deduction in the Event of Suspension
The suspension deduction defined in the plan is collected as specified in the regulation. The amount remaining after deducting the monthly total amount (5 TRY) during the suspension period in the relevant contract year as the MED is collected over the accumulation in a way not to exceed the annual and 5-year deduction upper limits.
Excellent Pension Plan
Excellent Pension Plan is a beneficial Private Pension System type offered by Kuveyt Türk that aims to provide you with a comfortable retirement. The main features of this pension plan are as follows:
- You can apply for Excellent Participation Pension Plan for a monthly contribution of 8.120 TRY or more.
- You can make your contribution payments in quarterly, semi-annual or annual periods.
- You will be eligible to retire when you reach 56, provided that you have been in the system for at least ten years from the entry date.
- There is no entrance fee in Excellent Participation Pension Plan.
- There is no MED on additional contributions in Excellent Pension Plan.
- In case of withdrawal before the end of the fifth year of the contract, a deferred entrance fee is charged. For each contract year, the portion of the amount corresponding to 8.5% of the monthly gross minimum wage to be applied in the first 6 months of the relevant calendar year, which corresponds to the total amount corresponding to the period until the end of the fifth year of the contract, which has not been collected as management expense deduction and/or interruption deductions and/or advance entrance fee until the date of withdrawal, is deducted from the accumulation as deferred entrance fee.
- While calculating the deduction for the uncollected years, the gross minimum monthly wage (GMMW) in the first 6 months of the relevant calendar year on the date of withdrawal is taken into consideration.
- A deferred entrance fee is not collected from those who have completed the 5th year of the contract, who leave due to death/disability or by exercising their right to retirement.
Excellent Participation Pension Plan fund expense ratios are:
| Fund Name | Daily Fund Operating Expense Deduction | Annual Fund Operating Expense Deduction | Daily Fund Total Expense Deduction | Annual Fund Total Expense Deduction |
|---|---|---|---|---|
| Katılım Emeklilik ve Hayat A.Ş. Alternative Aggressive Participation Shifting (currency) Pension | 0.0062 | 2.26 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Gold Participation Pension Investment | 0.0029 | 1.06 | 0.0029 | 1.09 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Balanced Participation Variable Pension Investment Fund | 0.0062 | 2.25 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Public Lease Certificates Participation Investment Fund | 0.0052 | 1.88 | 0.0052 | 1.91 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Stock Pension Investment Fund | 0.0062 | 2.25 | 0.0062 | 2.28 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Contribution Pension Investment Fund | 0.00095 | 0.347 | 0.00095 | 0.365 |
| Katılım Emeklilik ve Hayat A.Ş. Alternative Partcipation Standard Pension Investment Fund | 0.005151 | 1.88 | 0.005151 | 1.91 |
The management expense rates to be applied on an annual basis as of the effective date of the contract are as follows:
- 60 TRY for the 1st year
- 0 TRY for the 2nd year
- 0 TRY for the 3rd year
- 0 TRY for the 4th year
- 0 TRY for the 5th year
The deduction amounts to be deducted from planned and defined savings cannot exceed the annual and 5-year deduction limits in the current regulation.
Regarding the amount of management expense deduction (MED) to be deducted from savings:
- The first deduction is deducted from the savings in the first year of the contract following the realization of the fund purchase transactions of the contribution.
- In the following years, the deduction amounts defined in the plan are deducted from the savings in the relevant contract year.
- In cases where the deductions to be taken from the savings defined in the plan will cause the balance in the account to fall below TRY 0, the deduction collection is made in such a way that the balance is not reset to zero.
- The uncollected amount is collected when the balance is available within the contract year subject to the deduction.
Additional Management Expense Deduction in the Event of Suspension
The suspension deduction defined in the plan is collected as specified in the regulation. The amount remaining after deducting the monthly total amount (5 TRY) during the suspension period in the relevant contract year as the MED is collected over the accumulation in a way not to exceed the annual and 5-year deduction upper limits.
Early Participation Pension Plan
Early Participation Pension Plan is a beneficial participation pension plan for children under the age of 18. Below, you can find important details about this plan:
- You can apply for Early Participation Pension Plan for a monthly contribution of 325 TRY or more.
- The product is for individuals under 18 and includes a 20% government contribution, besides various assistance services.
- In order to be eligible for retirement, the participant must complete ten years in the system and reach the age of 56.
- The savings you will create for your child will be invested in the pension investment funds of your choice.
- Initially, there is no entrance fee. However, in case of withdrawal before the completion of 5 years, a deferred entrance fee is charged.
- You can use your right to suspend with a monthly deduction of 2 TRY.
- There is no management expense deduction (MED) in Early Participation Pension Plan.
- When the participant turns 18, they can take over the contract.
Early Participation Pension Plan Assistant Services
| Newborn package for 0 to 2 years of age |
| Free psychological counselling for mothers |
| Discounts on toys, furniture, clothes, baby seats, birth photography and nursery services at partner companies |
| Pre-school package for children aged 2 to 5 years |
| One free dental check-up |
| One free eye check-up |
| Play therapy for children aged 2 to 5 |
| Early adolescence counselling (Free introductory session at contracted institutions, up to 30% discount for other sessions) |
| School-age package for children aged 5 to 18 years |
| Online high school and university choice counselling |
| Discounted courses at contracted gyms |
Frequently Asked Questions About Private Pension
When Can I Withdraw from My Private Pension Plan?
You can terminate your participation in the Private Pension System at any time.
In which fund should I invest my savings in the Private Pension System?
You can invest your savings in various funds in accordance with your interest-free private pension principles.
How is the state contribution calculated?
The state contribution is calculated based on 30% of the contributions you pay. This rate also constitutes the upper limit of the state contribution.
How is the state contribution calculated for multiple PPI accounts?
If you have more than one PPI account, your contribution limit is allocated to all your accounts. Your monthly contribution payment determines the limit allocation to which account and at what rate.
What are the Private Pension System plans?
Private Pension System plans offered by Kuveyt Türk are as follows:
Practical Pension Plan
- A practical and affordable pension plan for your retirement.
- The minimum monthly contribution is 250 TRY.
Comfortable Pension Plan
- By saving little by little today, you can build up a good nest egg for your future.
- The minimum monthly contribution is 355 TRY.
Peaceful Pension Plan
- If you want to enjoy a tranquil retirement, you can choose the Peaceful Pension Plan.
- The minimum monthly contribution is 710 TRY.
Valuable Savings Plan
- With the Valuable Pension Plan, you can start adding value to your future today.
- The minimum monthly contribution is 1,045 TRY.