Poll: One in three Czechs want to join new private pension scheme

Prague, June 19 (CTK) - Only one third of Czechs aged from 15 to 60 consider joining the private pension schemes to be introduced as part of the pension system reform, while 77 percent fear that their savings in private pension accounts may be stolen or devalued, a STEM/MARK agency's poll has shown.

Two-thirds of Czechs said they have insufficient information about the forthcoming reform.

"The poll has indicated that a problem lies in the [bad] comprehensibility and comprehension of available information, rather than its insufficient volume," STEM/MARK said.

Within the planned "second pillar" of the pension system, people will be able to transfer 3 percentage points from their social insurance contributions to private pension accounts on condition they add an equivalent of another percentage points from their own pockets.

The social insurance is used to finance the state pay-as-you-go pension system. Social insurance contributions make up 28 percent of the gross wage.

People's joining the second pillar will be voluntary. However, after joining it, they will not be able to withdraw from the system.

From their private accounts they will be able to draw pensions until their death or for a period of 20 years. Unlike the "third pillar," i.e. extra private pension schemes, it will be impossible to draw the whole saved sum at once.

According to the STEM/MARK poll, 39 percent of respondents aged from 15 to 29 and 34 percent of those aged from 30 to 44 consider joining the second pillar.

Only one-fifth of older people said they ponder joining the new system.

About 58 percent of those who plan to save with private funds said they are afraid that the funds may be "tunnelled," i.e. money illegally siphoned off from them. This apprehension was voiced by as many as 85 percent of those who do not plan to join the pension system's second pillar and 84 percent of those who are still undecided on it.

STEM/MARK conducted the poll on 513 people earlier this month.