A Minimum Pension Guarantee Application for the Individual Pension System in Turkey: A Gendered Approach

Abstract

This study examines the minimum pension guarantee (MPG), a promise by government or pension fund management that at retirement, a person's annuitized benefit will be above a prespecified minimum level. For the first time, we use an actuarial model to discuss the role of MPG in lessening the gender gaps in pension incomes in the Individual Pension System of Turkey. Our results reveal that women would be more likely than men to receive pension subsidies and would require larger pension subsidies for every combination of investment decision and years of pension participation if MPGs were implemented.