Turkey (TR)
Turkey is a transcontinental nation straddling Europe and Asia across the Bosphorus Strait, uniting 85 million people under a rich civilisational heritage stretching from the ancient Hittites and Romans to the Byzantine Empire and Ottoman Empire.
Retirement & Pension in Turkey
State pension, contribution refunds, private pension vehicles, and international agreements.
Turkey's pension system is under significant stress due to demographic pressure and the effects of high inflation on TRY-denominated pension values. The state pension (SGK Emeklilik) is modest — approximately TRY 15,000–25,000/month (2026), equivalent to approximately €400–700 at current rates. The 2023 EYT reform allowed millions to retire early (based on contribution days without meeting age threshold) — this placed enormous additional strain on the system. Retirement age is gradually rising to 65 for both genders by 2048. The mandatory SGK invalidity, old age and death (MYO) contribution rates as of January 2026 are: employee 9% + employer 12% = 21% total (Law No. 7566 raised the employer share from 11% to 12% from 1 January 2026). The voluntary private pension system (BES — Bireysel Emeklilik Sistemi) with 30% government match (capped at 79,272 TRY/year in 2026) is an important supplement. A new mandatory Supplementary Pension System (TES) converting the voluntary OKS into a mandatory pillar II system was announced for rollout in 2026 — monitor official announcements from the Ministry of Labour (csgb.gov.tr). For expats: Turkey is increasingly popular as a retirement destination due to low cost of living in EUR/USD terms — especially Antalya, Bodrum, Fethiye, Alanya, and Kaş.
State Pension
SGK Emeklilik (state pension) is a contributory system under SGK. There are two contribution categories for most workers: 4/a (employed workers — SSK insurance) and 4/b (self-employed/Bağ-Kur). Pension amount is calculated based on: (1) total days of premium payment (prim gün sayısı), (2) average indexed earnings, and (3) a coefficient that depends on contribution period. The pension formula (aylık hesaplama) is complex and was significantly revised in 1999 and 2008. Those who entered the system before 1999 have different (more generous) calculation rules. Effective January 2026, the invalidity, old age and death (MYO) insurance contribution rates are: employee 9% + employer 12% = total 21% (Law No. 7566 raised the employer share from 11% to 12%).
For those entering SGK after 2012: retirement age is being gradually raised to 65 for both men and women by 2048. As of 2026 (approximate): women: 58 (those with contributions before certain dates may retire earlier); men: 60. Minimum days: approximately 7,000 days (≈20 years) for full pension. EYT reform (2023): those who accumulated sufficient contribution days before 8 September 1999 entry to the system could retire without age requirement — this window is largely passed. Check your specific entitlement at e-Devlet.
Minimum 7,000 premium days (approximately 20 years of contributions) for any pension. Full pension calculation based on all contribution days. Turkey has a minimum pension (minimum aylık) for contributors who meet age and day requirements but have low contributions — approximately TRY 12,000–15,000/month in 2026 (subject to regular increases).
Check your projected pension at e-Devlet (edevlet.gov.tr — SGK Emeklilik Sorgulama). You can see: total premium days accumulated, projected retirement date, estimated pension amount. The SGK Mobil app also provides this. Note: TRY-denominated pension projections are uncertain over long time horizons due to ongoing currency volatility.
Turkish state pension can be received from abroad by pension recipients who have left Turkey. Payment is in TRY — convert to local currency at your bank's exchange rate (meaning real value fluctuates with TRY). Countries with bilateral social security agreements (≈28 countries including most EU states) have arranged direct pension payment processes. For other countries: can receive at a Turkish bank account and transfer internationally. Pension is subject to Turkish income tax if above threshold — but pension recipients can have tax withheld at source by SGK.
Pension Contribution Refund on Leaving Turkey
Foreign (non-Turkish) SGK contributors who are NOT covered by a bilateral social security agreement with Turkey and have NOT reached pension age may be eligible for toptan ödeme (lump-sum refund) of their employee SGK contributions. Turkish citizens are not eligible for this refund.
Turkish citizens. Foreigners from countries with bilateral social security agreements (Germany, France, Netherlands, UK, USA, Canada, Australia, and others). Those who have reached Turkish pension age and are entitled to a monthly pension.
Must have been out of SGK-covered employment in Turkey for at least 1 year (or have left Turkey permanently).
Only the employee's share of SGK contributions — not the employer's portion. The refund is in TRY (no inflation adjustment). For long-term contributors, this is typically less than the actuarial value of the pension rights accumulated — pension receipt may be preferable if eligible.
Apply to local SGK Müdürlüğü (Provincial Directorate) in person or through a power of attorney. Submit: YKN/passport, bank account details, proof of departure from Turkey, application form.
The toptan ödeme option is mainly useful for short-term workers (a few years) whose contributions are insufficient to generate a meaningful monthly pension anyway. For those with 10+ years of contributions: carefully compare the lump-sum refund value vs. receiving a monthly Turkish pension at retirement age before deciding.
International Totalization Agreements
Turkey has bilateral social security totalization agreements with approximately 28 countries. Key countries: Germany (large Turkish diaspora), France, Netherlands, Belgium, UK, Austria, Denmark, Sweden, Norway, Finland, Italy, Spain, Portugal, Luxembourg, Northern Cyprus, Azerbaijan, Bosnia-Herzegovina, Kyrgyzstan, Albania, Libya, and others. Under these agreements: contribution periods in Turkey and the partner country are totalized for meeting minimum contribution thresholds; pensions from each country are paid separately and proportionally; workers on temporary assignment are covered by their home country's system. Check the current list at sgk.gov.tr. For countries NOT on the list: Turkish SGK contributions are standalone — you need to meet Turkish requirements independently.
Private Pension Vehicles
BES — Individual Pension System
Bireysel Emeklilik Sistemi (BES)All Turkish residents (including expats with YKN). Both employed and self-employed.
Government contributes 30% matching contribution on your contributions. The maximum annual government contribution is 79,272 TRY in 2026 (cap adjusted annually by presidential decree). This is a direct cash subsidy into your BES account.
BES contributions are NOT tax-deductible from income (unlike in Germany). However: accumulated funds grow tax-free until withdrawal. Withdrawal tax: if withdrawn after age 56 and holding for 10+ years: 5% withholding tax (very favourable). Early withdrawal: significant tax (15% or more).
No legal maximum contribution — but government matching (30%) capped. Check current annual cap at emeklilik.org.tr.
If leaving Turkey permanently: can request full surrender of the BES account after a waiting period (1+ year). Government matching: may need to be returned if account closed before qualifying holding period. Consider timing carefully.
BES is Turkey's most attractive pension vehicle for both Turkish citizens and foreign residents. The 30% government match is equivalent to an immediate 30% return on contributions. Managed by private BES companies (Garanti Emeklilik, Axa, MetLife, Allianz). Fund selection: choose funds that hold assets in USD/EUR or global equities to hedge against TRY devaluation within the BES account.
OKS — Automatic Enrollment Pension
Otomatik Katılım Sistemi (OKS)Employees under age 45 at workplaces with 5+ employees — automatically enrolled. Can opt out.
1,000 TRY state contribution for those who stay enrolled (one-time bonus for new enrollees, plus ongoing incentives).
Same tax treatment as BES — accumulated tax-free, withdrawal tax at 5% (if meeting age/holding criteria).
Default contribution: 3% of employee salary. Employee can increase. Employer may add contributions.
Yes — account is yours regardless of employer change.
OKS was introduced to boost pension savings. Many employees stay in due to the state contribution match. The BES and OKS accounts are managed by the same providers and can be combined.
Early Retirement Options
The 2023 EYT (Emeklilikte Yaşa Takılanlar) reform was a specific historical event, not an ongoing option. Under EYT, those who met the contribution day requirements that existed under the pre-1999 rules could retire without meeting the raised age thresholds — approximately 2.3 million people took advantage. This window is largely closed for new retirees. For workers with high SGK contribution periods who want to retire early: consult an SGK counsellor to check if any transitional provisions apply. For expats: early retirement from Turkish SGK is not commonly a priority — most expats either have short SGK histories or plan to retire in their home countries.
Pension Gap Warning
The Turkish state pension system delivers extremely modest pensions in EUR/USD terms due to TRY devaluation. TRY 20,000/month (a reasonable 2026 pension) is approximately €550 — barely above the poverty line in Western Europe. For expats planning to retire in Turkey: the low cost of living in USD/EUR terms means TRY 20,000/month can provide a comfortable lifestyle. For those planning to return to EU/USA/Australia: Turkish SGK pension alone will not be sufficient — supplement aggressively with BES, home country pension, and private savings. The key question: where do you plan to retire? Turkey residency makes the TRY pension viable. Outside Turkey, you need substantial additional savings.
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Retirement & Pension
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