On Wednesday(December 28th), President Erdoğan announced that effective immediately, the age requirement for 2.25 million Turks would be dropped. People who previously did not qualify for a pension despite having fulfilled other requirements will now be able to draw a pension.
This has been a controversial issue in Turkey since 1999, commonly known as EYT, an abbreviation of “those who cannot retire due to age”. In most countries, government retirement plans require a certain amount of premiums paid and a minimum retirement age. Since 1999, Turkey has been no exception.
On September 8th 1999, Turkey raised the retirement age to 58 for women and 60 for men. And in 2008, again raised the retirement age to 65. This new scheme prevented millions of people from being able to collect a pension despite having paid into the system for decades.
Earlier this year, the opposition began pressuring the Erdoğan government to resolve the EYT issue once and for all. After opposition figurehead Kemal Kılıçdaroğlu successfully pressured the Erdoğan government to wipe out interest payments on student loan debt, posted an image indicating that EYT was next.
EYT… pic.twitter.com/XAluPfrWpC
— Kemal Kılıçdaroğlu (@kilicdarogluk) July 18, 2022
The move allows for 2.25 million people to retire immediately, adding to the 13.9 million pensioners already collecting retirement payments in Turkey. However, it is uncertain if the already strained Turkish economy and the social insurance system can bear the burden of the additional retirees.
Earlier in October of this year, the previously projected Social Insurance budget deficit of 39 billion Liras, was revised to 59.2 billion. Additional funding was approved to transfer 420 billion Liras from the central budget to the nation’s insurance and retirement fund.
Erdoğan’s announcement ushering good news for millions and new pensioners did come 6 months away from the general elections, where the opposition is threatening to unseat the 20 year de-facto ruler of the country. And only a week after Erdoğan’s announcement of minimum wage for 2023, which many saw as an insufficient increase in light of Turkey’s hyperinflation.
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