A studyon the factors affecting the entry decisions tothe private pension system in Turkey

The "Individual Pension System" was actually started in 2003. To contribute to the individual pensions, a law was passed in the parliament in 2013 in order to present an additional contribution of 25% to the individuals who invested in the individual pension system. Following 2013, there have been positive developments in the number of those involved in the private pension system. Nonetheless, the system is far below the world standards. In this study, the factors influencing the entrance decisions of the individuals to the private pension system are analysed. Likewise, the reasons of those who have not preferred to participate in the private pension system and who have not decided yet are investigated as well. On the other hand, in the study, the factors affecting the decisions of the individuals were identified through face-to-face meetings and the social networks. Since the biggest contributors of the Individual Pension System are Istanbul, Izmir, Ankara, Antalya and Bursa, the interviews were made with individuals from different occupational groups in these cities; and data were gathered through the social networks. At the end of the research, it is identified that the reason for joining the private pension system is the desire to accumulate in long-term. Almost half of the individuals believe that they should remain in the system until they retire. It is also seen that the state contribution is very effective for the individuals. As their incomes increase, they are more involved in the individual pension system, and the married people are more willing to stay in the individual pension system for a long time. This situation corresponds to our expectations.