ECONOMIC EFFECTS OF INDIVIDUAL PENSION INSURANCE FUNDS

Abstract

As a result of population growth and technological developments, developed and developing countries have difficulties in meeting both the economic demands of the increasing elderly and retired population and the demands of welfare. The basis of these problems is that the "Social Security Systems" that states have established and tried to manage to create welfare standards and include all citizens are not sufficient in both their working and retirement lives. Unfortunately, there is a large number of financial deficits in these systems, which is why there is a significant decrease in the living standards of employees in the transition to retirement. In order to raise their living standards, retirees try to continue working and staying in business life. Due to these deficiencies, it has been accepted by developing and developed countries that states should have complementary systems besides their systems. Private Pension Systems and, as a part of it, Private Pension Systems came to the fore with the negativities experienced, welfare-enhancing expectations. Thanks to the private pension systems, employees have the opportunity to contribute financially to their retirement periods. In addition, the long-term funds provided by the participants are converted into investments by pension companies and transferred to the real sector as capital support. This study will focus on the economic effects of Individual pension systems that arise due to the deficits of social security systems in Organisation for Economic Co-operation and Development (OECD) countries