Job Discussion Forums

[googlebrains]

As I contemplate a long life in Turkey, I also need to think about financial security for when I am old and grey.

I hope to work in Bilkent, and it seems that there are no retirement benefits for yabancis. Can I pay into the Turkish system if I want to? What do those of you do for retirement funds? DO you invest in a private account (like Anadolu Hayat), do you pay into the system back at home, or is your retirement fund inside that piggy bank in your bedroom?

I am Canadian, by the way.....

[31]

[Volodiya]

There are a lot of angles to this question which have to be considered. Several posters to this forum have, from time to time, put down some sensible ideas. I'll add mine, common place as they may seem. Others can give you some more specific suggestions.

The most important thing to remember is that you can do it, in spite of what some might say.
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You could take a look at the possibility of paying into your Canadian retirement system through the years, as it probably would pay you a more meaningful sum when you reach retirement.

Does your Canadian health care system provide extra-territorial benefits, if you keep the premiums paid? Are you free to join at any time, or must you have participated through the years to be eligible? This could go a long way to providing you with permanent, portable, affordable health insurance. Otherwise, you're faced with purchasing, while you're still in good health, a fairly expensive, private policy of permanent health insurance, and maintaining it through the years. (Americans don't have much of a choice, as U.S. medicare provides no extra-territorial benefits. For an example of the type of private insurance I'm talking about, you could look at www.ihi.com.)

I prefer to think in terms of keeping some earnings going for as long as possible- through tapering off from work, rather than completely ceasing from work. An experienced teacher can continue to earn, through part-time and private work, for a good many years to supplement other retirement income- and who really wants to sit around doing nothing, anyway?

Purchasing a place to live, both to reduce expenses in retirement and guarantee a roof over your head has got to be considered. Why not buy the first thing you can afford to pay cash for, then moving to something better when you can afford it? (At least, this way you can partially avoid getting behind the eight ball of rapidly rising real estate prices which can put you further from your goal, even while you are saving towards a purchase. Paying cash keeps you from having to pay mortgage interest- money, that together with the interest it would earn, could be put towards the purchase of your next property, instead.)

Earn all you can and save all you can, now, while you still have your full measure of energy, and interest in working. Do what you can do now to supplement your earnings with extra work. You can't fully know what your needs for savings will be, but all you can manage to earn and save is a good place to start.

Lastly, avoid, insofar as possible, the loss of any of your principal through investments which entail any significant degree of risk. Better to have your money at interest than to lose even a part of it. Remember, your best investment is in yourself, what you can do in your own power and with your own skills. There are few investments that can return annually what you are capable of earning and saving- risk free.

[Volodiya]

I was hoping others would fill in the details, and perhaps they will, yet, but here are some additional things I'd say about retiring in Turkey.

The banks are really, really modern and efficient. I've had accounts there for a number of years; can access all of them through the internet, and the customer service standards are high. You can get debit and credit cards that will work around the world. Bank collapses are possible; but, like other countries, Turkey has a system of guarantees for depositors.

Turkey has one of the most liberal regimes in the world for giving permanent residence to non-citizens: buy a flat, and you have a basis for requesting resident status. Turkey also has one of the most liberal foreign investment regimes that I've seen. This becomes important if you wish to start a business, later.

Very good medical care is available in Turkey. For eight years, I made Istanbul my stop for all medical and dental care, preferring it to the U.S. for ease of access, quality, and price. (Many of the better physicians have studied medicine at the graduate level in the west, and work with the most modern equipment.)

For at least the last three years, Turkey has enjoyed a period of remarkable financial stability (for Turkey). Inflation is still high, compared to the U.S., for example, but it's come down.

Real estate prices have risen sharply in the last two years (as noted by other posters), perhaps fed by the large sums many people have made betting on the Turkish Lira, by buying into extremely high interest paying government bonds. (Others will know the details, and perhaps share the details with you.)

Could things blow up, again, like it did a few years ago, when the country was thrown into financial crisis? Possibly. Turkey still relies heavily on the IMF to keep the wheels of commerce turning; but, there's hope, and overall, it's a great country (my opinion).

[scot47]

UKanians with a UK work record can continue to pay National Insurance which will get them a pension after retirement. No idea about Canucks.

[richard ame]

Hi
Buying a place or places of your own is vital if you intend to stay for a while, don't leave money in the bank ,invest in a local savings or pension fund accumalate assets especially precious metals . Always a good hedge against inflation . Property prices are set to rocket very soon .

[Faustino]

Property prices have already rocketed in Istanbul. There are some good retirement plans available. PM me, maybe I can give you some pointers.