The Private Pension System is a special pension scheme that enables you to save safely for your retirement period and turn these savings into investments. You can receive the yield you have obtained from your investments as either a one-time payment or retirement pension.
To enroll in the Private Pension System, you may enter into an agreement with any pension company you wish. For this, you need to choose a plan or investment strategy that best suits your needs from among the pension plans that the company offers in accordance with your preferred risk return profile. Pension plans include mutual funds in different risk categories. You can see the estimated saving amount that you will receive in your retirement based on the contribution amount you are willing to pay. If you accept the terms, your pension contract is established. If you wish you may change your pension plan or the fund distribution of your payments up to 6 times a year. Additionally, you can transfer your savings to another company without losing your rights.
You may leave the Private Pension System at any time you wish; however, in this case, you cannot benefit from the retirement advantages.
An income tax deduction rate of 15%, 10%, or 5% shall apply over the total return of your savings, respectively, if you leave the system before completing 10 years, upon completing 10 years but before the age of 56, and upon completing 10 years and after the age of 56.
You may leave the Private Pension System at any time you wish; however, in this case, you cannot benefit from the retirement advantages. An income tax deduction shall be applied over the total return of your savings at a rate of 15% if you leave the system before completing 10 years, of 10% if you leave the system upon paying your contributions for 10 years but before the age of 56, and of 5% if you leave the system upon completing 10 years and after the age of 56 at the least.
It is a private pension product of a certain investment strategy where pension investment funds are combined in accordance with your preferred risk return profile. It may as well be defined basically as technical principles determining the manner of application of the pension contract.
In the Private Pension System, you get to determine the amount of your contribution based on your budget or the one-time payment or retirement pensions you wish to receive in the future. You may start contributing the minimum amount indicated in the pension plan of your selection. If you wish, you can increase the amount of your contribution, you can take a break from making payments for your pension scheme whenever you want, and you can continue where you left from when you wish. You can determine your payment periods (monthly, quarterly, semiannual, annual); if you make your payments with Garanti BBVA credit cards, you can take advantage of special offers.