Evaluation of willingness to have pension plan in turkey and auto enrollment system

Abstract

Actuality: Private pension systems have important contributions to both individuals and the financial system and economic development of any country. To be sustainable for this contribution, individuals must be permanent in the system. On the other hand, policy makers should design the system effectively. It is observed that some countries apply automatic enrollment system in order to increase participation in the system. The aim of this study is to determine the level of those who remain in the auto enrollment system of employees in Turkey and if the people are willing to have private pension plans. Research Method: In order to achieve the objectives, an online survey was conducted through easy sampling during the Covid-19 period and 454 people participated the survey. Results show that 51% of the people in the automatic participation system have exited the system in the last three years. Besides, people in the Auto Enrollment System is 25,3% and in the Voluntary Participation is 29,3. While the rate of people with positive intention to have a future retirement plan is 26.7%, the rate of people with negative intentions is 44.3%. Implications: The findings of the study reveal that the level of knowledge about the pension system should be increased and the transparency and more appropriate income opportunities required by the participants in the automatic participation system should be provided. JEL: D14, H55, G51.