The 54.6 percent increase in the minimum wage caused a huge change in the Individual Pension System (BES). The increase in the minimum wage to 8 thousand 506 liras increased the government incentives for the BES investors at the same rate. Because in PPS, the state contribution can be up to 30 percent of the gross minimum wage at most. This year, in 2022, the minimum wage was increased in the middle of the year due to high inflation. With the increase in the middle of the year, BES investors benefited from a contribution of 20,652 liras against 68 thousand 850 liras of savings only in voluntary BES and 41 thousand 304 liras with automatic BES in 2022.
72 THOUSAND LIRA INCENTIVES FOR WHO ACCOUNTS 240 THOUSAND LIRA
With an increase of 54.6 percent, citizens who only take part in voluntary BES in 2023 will receive a government incentive of 36 thousand 24 liras (3 thousand 2 liras per month) in 1 year against a savings of 120 thousand 96 liras (10 thousand 8 liras per month). Citizens in both voluntary BES and automatic BES will receive twice this amount, 72 thousand 48 liras (6 thousand 4 liras per month). Of course, this incentive will be deserved against a total savings of 240 thousand 192 liras.
100 LIRA YOU 30 LIRA STATE
The state gives an incentive of 30 liras to every citizen who saves 100 liras in the BES, which it has implemented as a money saving system to increase savings. However, this has an upper limit. The upper limit also depends on the minimum wage. A maximum of 30 percent of the gross minimum wage is given in a year. The increase in the minimum wage increased the upper limit of this incentive by 54 percent. Since the government’s goal is long-term savings, those who stay in the system for 10 years and up to 56 years deserve all of this money. Until that date, the state contribution is valued in investment instruments together with your own savings. So when you retire, you get the valued version of this money. Those who leave at the end of the first 3 years are entitled to receive 15 percent of the state contribution, those who have completed 6 years, 35 percent, those who have completed 10 years and not completed the age of 56, are entitled to 60 percent of the state contribution.
FUND SELECTION IS EVEN MORE IMPORTANT
We can divide the annual 240 thousand lira into 12 months and pay each month, or you can deposit this amount, for example, in January. Thus, the amount you invested will be valued in BES funds for 12 months, and since the state contribution will be deposited on your behalf, 72 thousand lira will be directed to investments throughout the year and it will be increased even more. However, the selection of funds in this area is of great importance for the valuation of your savings.
3-YEAR RETURN 827 PERCENT
When we examine the BES funds, the Metlife Emeklilik stock fund ranks first with 24 percent in monthly return. The 1-year return of this fund was 217 percent and the 3-year return was 449 percent. In second place is the Fiba Emeklilik stock fund. The monthly return of this fund is 18 percent, its annual return is 266 percent and its 3-year return is astronomical, such as 827 percent. In third place is Türkiye Hayat stock fund with a monthly return of 17%. The long-term return of this fund is also not worse than the others.
