| Summary/Abstract |
This study addresses economic issues associated with the private defined benefit pension system in Turkey. Findings show that the new Turkish pension scheme has generated significant welfare improvements for individual investors, but at a loss in tax revenue and an economic resource cost to the country. If the bank-administered Tax-Free Contribution Accounts and/or Tax-Free Savings Accounts, similar to those operating in Canada, were adopted in Turkey and the requirement of holding government securities was lifted, such schemes would provide contributors with benefits similar to what they currently enjoy under the new Turkish scheme, while eliminating the economic resource costs of administration and improving their net fiscal impact.
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