Analysis of the development of the private ension system in Turkey and its relationship with different economic variables

Private Pension Systems (PPS), which have become widespread all over the world as a complement to Social Security systems, are applied by most developed and developing countries today. In addition to the purpose of eliminating some deficiencies or delays arising from the complex and complicated structures of Social Security systems, PPS also attract attention with their internal savings fund function. In this respect, when the Private Pension System is evaluated as both a social security instrument and a source of internal financing, it becomes an important component of economic life. In this study, the development and application of the Private Pension System were examined. Economic variables, especially household savings that have a great impact on spending habits, and whether income are related to PPS funds were investigated. Between 2003 and 2021 in Turkey, household savings were analyzed by the Least Squares (EQ) method by taking the GDP and PPS funds in the form of annual time series. According to the results of the analysis, where the dependent variable was taken as household savings, it was revealed that the PPS funds had an effect on increasing savings. The prediction results of the installed model were tested with different robustness tests. According to the results, the model is meaningful. Accordingly; It was concluded that the Private Pension System had a positive effect on household savings in the period of 2003-2021 in Turkey and that the increase in income supported this process.