In Turkey, due to lack of financial literacy, beneficiaries are unable to manage their private pension plan in the most efficient way. The portion of planholders that change the fund allocation at least once a year is only 3%.
The Private Pension Plan System in Turkey returned -6% in 2015 and 3% in 2016 in real terms, while a high risk portfolio run by zek.ai within the private pension system made 20% in 2015 and 32% in 2016.
The private pension system grew 30% in 2016 and reached 54 bn TRL. The number of planholders passed 7 mn.
The model is scalable to private pension plan system with a B2C model and to private banking and affluent clients as a B2B model.