In Turkey, public savings have increased over the past few years while households have tended to reduce their savings. Various policies are being developed to increase household savings. One of these is public incentives for the individual retirement system. However participation in the individual retirement system is quite low when compared with OECD countries. In this study, the effects of the public incentives for the individual retirement system in Turkey on household savings are examined theoretically, and policy suggestions for the system are made. Considering the assumptions of neoclassical, behavioral and institutional approaches about savings and country experiences, revising the individual retirement system with complementary regulations will increase the chance to reach the goals of the system.