Private pension funds and their effects on capital market

In social security system, applications in the extent of pension are one of the discussing issue in developed and also developing countries in recent years. By the reason of financial problems in PAYG (Pay As You Go) which is being used for finance of pension, revived the approach in which pension system depends on funded method. Funded method which can be used more appropriate at private pension systems, is applied as substitutable and complementary for the distribution method which is used at the social insurances by countries. As a institutional investor the private pension funds, provide additional income and have an important role in terms of emerging and performing capital markets regularly with creating long term funds. For the purpose of terminating crisis in Public Pension System which is depended on social insurance foundation, individual pension system, depended on voluntary participation and has a complementary feature for public pension system, promulgated in our country. In concur with individual pension system, investment instrument?s proliferation in money and capital markets, institutional investor?s efficiency rising and evolution of capital markets with long term funds are expected.