Retirement Anxiety in Turkey: Between East and West

How Turks navigate retirement amid inflation and currency challenges

December 2025 · 10 min read

Turkey's retirement planning challenge is shaped by economic volatility unlike most other countries in this series. The Turkish lira's depreciation — losing 80%+ of its value against the dollar since 2018 — and inflation that peaked above 85% in 2022 have severely eroded retirement savings for millions of Turks, creating acute anxiety about whether today's savings will be worth anything tomorrow.

Turkey's Social Security System (SGK)

Turkey's Sosyal Güvenlik Kurumu (SGK) administers social insurance for employees, the self-employed, and civil servants. Social security contributions fund old age pensions, disability benefits, and survivors' pensions. The statutory retirement age has been rising, with different rules for men and women based on entry date into the system.

The BES Individual Pension System

Turkey's Bireysel Emeklilik Sistemi (BES) is a voluntary individual pension system with significant government support. The state contributes 30% matching contributions on worker contributions up to a limit, making it financially attractive. BES assets have grown to 500+ billion lira, though their real purchasing power depends heavily on investment returns relative to inflation.

The Inflation and Currency Challenge

Turkey's high inflation — and the historical depreciation of the Turkish lira — creates unique retirement planning challenges. Savings denominated in lira may lose real value faster than they accumulate. Many Turks hedge by holding savings in dollars, euros, or gold. Retirement planning must account for currency risk in ways unfamiliar to most other markets.