The Size of Pension Funds Exceeds 30 Billion TL in Private Pension System
Foreks - Katılım Emeklilik continues to sustain its stable growth strategy in the last quarter of the year. As of September, the total fund size in Katılım Emeklilik’s Individual Pension System has increased by 85% compared to the beginning of the year, reaching 30 billion TL. Ayhan Sincek, the General Manager of Katılım Emeklilik, stated, “As we close our 10th year, we are continuing to increase our fund size and market share thanks to the interest and trust of our participants.” Sincek reminded that the opportunity to benefit from a maximum of 30% government contribution for pension participants whose total contributions fall below the specified limit remains valid until the end of the year.
Ayhan Sincek expressed that they maintain their leadership in their field with participation-based, interest-free fund options and innovative products, stating, “Thanks to the interest and trust of our participants, we continue to increase our fund size and market share. As of September, we reached a fund size of 30 billion TL with an 85% increase in the Individual Pension System since the beginning of the year. As we complete our 10th year in the sector, we are the company that offers the most fund options among companies providing interest-free individual pension services with our 17 interest-free fund options. We will enhance our competitive power in the market with our strong distribution channels, integration infrastructure, innovative products, and customer satisfaction-oriented approach.”
Emphasizing that the individual pension system has become one of the most preferred savings tools, Ayhan Sincek stated, “We have achieved successful growth performance in interest-free funds, which have attracted significant interest from citizens looking to earn income from different savings tools. Katılım Emeklilik offers various participation-based pension plans on both voluntary and automatic enrollment sides. With our agency and broker network spread across Turkey and our innovative product portfolio, we stand by our participants. Additionally, our field studies provide us the opportunity to listen to participants' needs directly and respond to them.”
Sincek highlighted that they provide individual pension participants with the opportunity to generate returns above inflation through participation-based funds like gold, foreign exchange, and stocks, stating, “We stand out as the company that offers the most fund options among retirement companies that provide interest-free individual pension plans, with our 17 individual pension funds. Especially this year, our sustainability-themed interest-free pension fund that we introduced to the sector is of great importance as one of the first funds in the field of interest-free pensions. Furthermore, our dividend-paying company stock fund that we have publicly offered and our precious metals fund with a specific silver share are also receiving great interest from our participants.”
Opportunity for Unmissable Government Contributions in the Pension System
As the end of the year approaches, Ayhan Sincek makes an important reminder to pension participants, emphasizing that they need to reassess their contributions to benefit maximally from government contributions. Sincek stated, “The upper limit of the 30% government contribution in the Individual Pension System (BES) is determined according to the minimum wage. This limit does not exceed 30% of the annual total gross minimum wage. For participants whose total contribution in 2024 remains below the specified limit, the opportunity to benefit maximally from the 30% government contribution is valid until the end of the year. The right to government contribution granted each year is limited to that year. Therefore, we recommend participants who have the opportunity to deposit the contribution difference until the end of the year. If individual pension payments reach at least 240,030 TL throughout 2024, participants will be able to benefit from the maximum level of the 30% government contribution, which is up to 72,009 TL.”
Katılım Emeklilik also leads the digital transformation in the sector
Sincek expressed that Katılım Emeklilik has made a significant contribution to the digital transformation of the sector, saying, “With our Mobile Fund Assistant project, we have introduced a remarkable innovation in the field of digital transformation. This intelligent assistant, based on artificial intelligence, helps our participants manage their savings in the most suitable way. Users obtain information about their personal preferences through a risk profile questionnaire they fill out before investing. Based on this data, the Fund Assistant offers tailored savings recommendations to help increase their returns. This experience, shaped according to the participants' risk preferences, allows for more informed and effective investment decisions. The Fund Assistant provides customized saving strategies for our participants, maintaining a flow of information at regular intervals. Through the application, they can review their investment portfolios in detail with graphs showing the performance of funds during specific time periods and risk analysis reports. They also have the opportunity to monitor the current returns of their preferred funds in real-time. Thus, they can make investment decisions with a data-driven approach, enabling them to take more conscious and strategic steps. With our Fund Assistant application, we provide a strong tool to support our participants in achieving their financial goals.”