The Factors Determining the Entry Decisions to Individual Pension System: A Comparison of Academicians Working in Public and Foundation Universities
İsmail Canöz, Halim BaşThis study aimed to determine the factors that affect academicians’ decision to participate in the Individual Pension System. They will be analysed separately as a foundation university or public university. For this purpose, 405 academicians participated in a survey. The survey consisted of 18 statements and with the help of factor analysis; these statements were divided into three different dimensions. These dimensions were (1) Saving Habits and Investment, (2) Financial Literacy Level, and (3) Future Anxiety and Assurance. The answers given were analysed using a Logistic Regression Model. The results of the data for public university employees showed that the variables of the habit of saving, investment, financial literacy, future anxiety and assurance, gender, and experience affected an academics’ decision to enter the Individual Pension System. At the same time, this model correctly predicted that public university academicians with individual pensions, with a success rate of 83.7%. On the other hand, according to the data analysed for foundation university employees, the variables of the habit of saving and investment, financial literacy and age affected academics’ decision to enter the Individual Pension System. This model correctly predicted foundation university academicians with individual pensions, with a success rate of 77.1%.
Bireysel Emeklilik Sistemi’ne Giriş Kararlarını Belirleyen Etmenler: Devlet ve Vakıf Üniversitelerinde Çalışan Akademisyenlerin Karşılaştırılması
İsmail Canöz, Halim BaşBu çalışmanın amacı, akademisyenlerin Bireysel Emeklilik Sistemi’ne katılma kararlarını etkileyen faktörlerin belirlenmesidir. Bu faktörler belirlenirken akademisyenler çalıştıkları kurumlar göz önüne alınarak vakıf/ devlet şeklinde ayrı ayrı analiz edilecektir. Bu amaç doğrultusunda araştırma anketine 405 akademisyen katılmıştır. Anket, 18 ifadeden oluşmaktadır ve faktör analizi yardımıyla bu ifadeler üç farklı boyuta ayrılmıştır. Bu boyutlar; (1) Tasarruf Yapma Alışkanlığı ve Yatırım, (2) Finansal Okuryazarlık Düzeyi ve (3) Gelecek Kaygısı ve Güvence’dir. Ankete verilen cevaplar Lojistik Regresyon Modeli ile analiz edilmiştir. Sadece devlet üniversitesi çalışanları için yapılan lojistik regresyon modeli sonucu, tasarruf yapma alışkanlığı ve yatırım, finansal okuryazarlık düzeyi, gelecek kaygısı ve güvence cinsiyet ve görev süresi değişkenlerinin akademisyenlerin Bireysel Emeklilik Sistemi’ne giriş kararlarını etkilediğini göstermiştir. Aynı zamanda model bireysel emekliliği olan devlet üniversitesi mensuplarını %83,7 başarı ile tahmin etmiştir. Öte yandan, sadece vakıf üniversite çalışanları için analiz edilen lojistik regresyon modelinin sonucuna göre, tasarruf ve yatırım alışkanlığı, finansal okuryazarlık düzeyi ve yaş değişkenleri akademisyenlerin Bireysel Emeklilik Sistemi’ne girme kararını etkilemektedir. Bu model %77.1’lik başarı ile vakıf üniversitesi akademisyenlerinden bireysel emekliliği bulunanları doğru sınıflamıştır.
Social security is considered one of the measures of social policy that concerns and covers all segments of society. As a result of the fundamental rights that the social state undertakes to guarantee, social security has been systematized. It offers a guarantee of protection against physiological and socioeconomic risks that lead to consequences such as deducting income and increasing expenses.
On the other hand, there is a direct interaction between social security systems and the economic and demographic structure of a country. In the 1970s, as a result of the excessive financial burden of the social security administration, Turkey was faced with a disruptive revenue-expenditure imbalance. These excessive financial burdens were as follows: Giving pension rights regardless of age limit, using funds in a wrong and inefficient manner, forgiving premium receivables, and service debt, etc. In the mid-1990s, the need for reform of social security emerged in Turkey. Within the scope of the reform works that started in 1999, a voluntary Individual Pension System (IPS) was introduced with law Number 4632 which was put into practice in 2001. With this system, it aimed to establish an administrative structure to control the lack of existing social security institutions.
The IPS is a beneficial system for directing the savings of individuals in longterm investments and increasing the savings of the country. This study’s aim was to determine the factors that affect an academicians’ decision to participate in the IPS. While determining these factors, the institutions where academicians work was taken into consideration. They were analysed separately as a foundation university or a public university. This was because all foundation university academicians are insured under 4/a Compulsory Insurance and public university academicians are subject to Civil Servants’ Act No. 657. For this purpose, 405 academicians participated in the survey. The survey consisted of 18 statements and with the help of factor analysis; these statements were divided into three different dimensions. These dimensions are; (1) Saving Habits and Investment, (2) Financial Literacy Level, and (3) Future Anxiety and Assurance. The answers given to the survey were analysed using a Logistic Regression Model.
According to the findings obtained from these demographic features, 325 state university employees and 80 foundation university employees participated in the survey. The results for public university employees showed that the variables of the habit of saving and investment, financial literacy, future anxiety and assurance, gender and experience affected an academics’ decision to enter the IPS. At the same time, this model correctly predicted public university academicians with individual pensions, with a success of 83.7%. On the other hand, according to the results for foundation university employees, the variables of the habit of saving and investment, financial literacy and age affected an academics’ decision to enter the IPS. This model correctly predicted foundation university academicians with individual pensions, with a success of 77.1%.
Although academic staff working at the state and foundation universities are considered to have the same occupation, their social security coverages are different. In parallel, their salary scales are also different. For this reason, it may be different for people belonging to these two groups to participate in the IPS and what kind of financial asset they consider the IPS funds to be. The results showed that both the habit of saving and investment and financial literacy affected both groups positively. However, future anxiety and the assurance variable was statistically positive for academic staff at public universities, but not for academic staff at a foundation university. At the beginning of the study, it was assumed that a contrary finding would be obtained. The researchers believed that academic staff at a foundation university would be anxious for the future as they will probably have a lower monthly salary during retirement. For this reason, it was thought that they should feel more positive towards the IPS.
For both individual pension companies and the government, it was important to identify occupational groups that could contribute more to the IPS. The increase in funds collected by companies would mean more resources for investments. Pension companies operating in the IPS must focus on occupational groups with income levels that can save. In this regard, awareness should be increased to encourage participation in the IPS and therefore providing clear guidelines that determine factors so that employees would consider participating in the IPS. Knowing these factors can help IPS companies in sales and marketing strategies. Besides, this system also contributes to individuals’ earning additional income during their retirement.
