Can I Open an Individual Pension Plan for My Child?
As a parent, there is no limit to the dreams you build for your child; leaving them a safe, peaceful, and strong future is perhaps one of your greatest wishes. Receiving a better education, building a career they can stand on their own with, or not being affected by the economic fluctuations life may bring… All of these are shaped by small but right decisions you make today.
At this point, the same question appears in the minds of many parents: “Can I open an individual pension plan for my child?”
In fact, this question is not just a technical detail out of curiosity; it is a natural reflection of parents’ desire to build a long-term safety net for their children.
The Individual Pension System (BES) is not only a model where adults save and secure their future; it is also a system that offers great opportunities for children to make a stronger financial start. Moreover, it is supported by highly attractive advantages such as government contributions.
Is an Individual Pension Plan Possible for Children?
Yes, it is possible, and it is becoming an option preferred by more and more families each year. The individual pension regulations in force in Türkiye now allow children under the age of 18 to be included in BES. This gives parents the opportunity to start saving on behalf of their children today and to prepare a solid financial foundation for their future.
In the past, the individual pension system was only available to adults. However, with recent regulations, it has become possible to start BES at a young age. This change represents a major opportunity, especially for parents who plan long-term financially. Because savings that start early can produce much more efficient results thanks to the advantage of time.
In addition, the government contribution offered within the system makes savings made on behalf of children even more attractive. Just imagine; while your child is growing up, a savings fund slowly takes shape in their name. This fund can become a great support for education expenses, career plans, or when they start building their own life.
How Does BES Work for Those Under 18?
The individual pension system for those under 18 basically works the same way as it does for adults, but there are a few important details specific to children. The contract is opened in your child’s name, and all transactions are carried out by you as the parent or legal guardian. Just like in adult plans, a 30% government contribution is added to the contributions you pay, which provides a very valuable advantage in the long term.
Fund selection, risk preference, and all management processes are under your control; when your child turns 18, these authorities are fully transferred to them. All accumulated savings are considered the child’s own asset, making this account a strong investment in their future that you have started today.
Why Should You Open a BES for Your Child?
There are actually many answers to this question. But the most prominent ones can be listed as follows:
Small Savings Create a Big Future
You don’t need very large monthly budgets. Even small regular payments can turn into significant capital over the years. Especially starting at an early age allows savings to grow and gain value for many years.
30% Government Contribution Is a Major Advantage
Today, no other investment tool directly adds 30% on top of what you pay. The government contribution makes BES especially attractive for children.
It Can Be an Important Support for Education and Living Expenses
When your child turns 18, they will most likely start university. Having such savings can be very valuable to avoid financial difficulties during this period. Moreover, it also provides economic security when they enter working life in the following years.
Builds a Habit of Regular Saving
With automatic monthly payments, a regular savings culture is formed. This is a forward-looking discipline for both you and your child.
A Secure Investment with Risk Diversification
Funds are managed by professionals. Since savings are evaluated across different sectors and markets, they are not dependent on a single investment. This provides more stable growth.
How Much Can Child BES Returns Be?
This completely depends on the contribution amount you make, your fund preferences, and market conditions. However, it is useful to know the following:
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The earlier you start, the higher your returns will be.
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The government contribution creates a very large accumulation in the long term.
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Families who make regular payments usually achieve very satisfying results.
In short, a payment that seems “small today” can open a strong financial door for your child when they reach the ages of 18–25.
What Should You Pay Attention to When Opening a BES for Your Child?
As with every financial decision, there are a few points you should pay attention to here as well:
Determining the Right Contribution Amount
You should choose a plan that does not strain your budget but that you can pay regularly.
Fund Allocation Is Very Important
Returns may be lower in low-risk funds, while high-risk funds can offer significant gains in the long term. Therefore, you should analyze your fund preferences carefully.
Make Use of Additional Contribution Options
Whether it’s a holiday or a birthday… You can strengthen your savings by making additional contributions during periods when you receive extra income.
Understand the Termination Process Well
In case of early exit, part of the government contribution is refunded. Therefore, BES should be considered as a long-term plan.
What Happens When Your Child Turns 18?
This is actually the most exciting part. When your child becomes legally an adult:
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The management of the contract is transferred to them.
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They can continue, pause, or increase the contribution amount.
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During this process, you will have helped them gain financial awareness.
