Turkey’s Retirees Hit Hardest by Inflation: Purchasing Power Plummets

In Turkey, the group most severely impacted by inflation has been retirees. A historical comparison reveals how dramatically their financial position has eroded. In 2005, the lowest pension was higher than the minimum wage, offering a sense of security for those in retirement. Fast forward to September 2025, and the lowest monthly pension now stands at 16,881 TL, significantly below the current minimum wage of 22,104 TL. This imbalance has left retirees struggling to make ends meet, with their purchasing power collapsing to levels far beneath basic living standards.

A Long-Term Erosion of Retirement Incomes

The persistence of high inflation in Turkey has turned pensions into stagnant incomes unable to keep pace with soaring prices. Analysts highlight that in just two decades, pensions have been steadily devalued when measured against daily living costs and savings capacity. What once provided a modest but stable livelihood has now transformed into a wage that barely covers essentials. According to opposition lawmaker Ömer Fethi Gürer, “İktidar başta emekliyi yoksul yaşamaya mahkûm etti,” underlining that retirees are increasingly pushed toward poverty.

Government Remarks Stir Controversy

The issue has been further aggravated by political remarks that sparked debate. Labor and Social Security Minister Vedat Işıkhan commented on the difficulties of pension payments by saying, “Çok şükür zor koşullarda da olsa ödüyoruz.” While meant to express relief that pensions are still being disbursed, the statement was perceived by many retirees as dismissive of their struggles. This has intensified frustration among a demographic already feeling abandoned amid rising living costs.

Falling Behind on Daily Necessities

The decline in retirees’ real income is most visible in basic food consumption. Back in 2005, a pension could buy 1,344 loaves of bread; today, that figure has dropped to 1,125 loaves. Similarly, when measuring smaller social expenses like tea and simit, retirees could once enjoy thousands of servings. Now their pensions cover only around 844 servings combined, a sharp fall that underscores how even small indulgences are being stripped from daily life.

Housing Costs Push Retirees to the Brink

Housing and rent expenses represent the heaviest burden. In 2005, a retiree’s rent or housing costs typically consumed about one-third of their pension. Today, the reality is harsher: rents and housing expenses can exceed the pension itself, amounting to nearly one and a half times the minimum pension. This mismatch has forced many retirees to downsize, relocate, or rely on family support just to keep a roof over their heads.

Savings and Gold Lose Their Value

Perhaps the clearest indicator of retirees’ declining wealth is their inability to save. In 2005, the lowest pension was enough to purchase more than 12 quarter gold coins, an accessible way for families to save for the future. As of September 2025, that same pension can only secure two quarter gold coins. This sixfold decline highlights how the erosion of pensions has wiped out any opportunity for retirees to protect their financial future. For many, saving has become an impossible luxury, leaving them entirely vulnerable to economic shocks.

A Collapse in Living Standards

Beyond statistics, the story of retirees is one of dignity and survival. What was once a period of life associated with rest and security is now marked by anxiety over bills, groceries, and rent. The collapse in purchasing power illustrates how economic policy, inflation, and currency depreciation intersect to undermine social stability. Reports indicate that living standards in Turkey have hit bottom, with the country ranking poorly in both economic security and social well-being.

The Bigger Picture of an Aging Population

The plight of retirees is also a warning about the future. Turkey’s aging population is growing, and without structural reforms, the pension system faces long-term sustainability issues. As retirees continue to lose ground against inflation, the broader economy risks facing increased social tensions. Ensuring a dignified retirement is no longer a question of comfort but of social responsibility and economic necessity.