Recent years have witnessed intense pension reform efforts in countries around the globe, often involving an increased use of funded pension programmes managed by the private sector. These funded arrangements are likely to play an increasingly important role in delivering retirement income in many countries and privately managed pension assets will play an increasing role in financial markets, notably as a source of long-term savings. According to the report that is published annually, Pension Markets in Focus 2013 by OECD, the pension mutual funds of Turkey took the first place with a nominal yield of 11.6 percent. Denmark and Mexico took the second and the third places with the percentages of 8.5 and 7.7 nominal yields due to the analysis of the datas of the OECD countries’ pension funds in the last 5 years.
Performance-based deduction practices in 2014
The Vice President of Insurance Association of Turkey (TSB), Mete Uğurlu, has evaluated that, “To be in the first place among the developed countries which achieve very powerful results in the pension systems is a very challenging success. This result also is a proof of a high standard progress of our system, because we have only a 10 years history.”
On the other hand, Uğurlu also said, “The efforts intended to increase the performance of the pension funds continue. In 2014, performance-based deduction practices will begin. We believe that, in the following years, we will continue to be at the top ranks among the other OECD countries.”
