Poll: Most Czechs not clear on pension reform

Prague, Sept 19 (CTK) - Roughly 60 percent of Czechs do not understand the government-sponsored pension reform, according to a recent poll conducted by the Median polling agency, commissioned by Czech Radio and released yesterday.

Almost two-thirds of Czechs are against saving money for their pensions in private funds.

Middle-aged people and those with higher education tend to understand the pension reform most, the poll found.

Czechs are afraid that they might lose their savings.

Over 70 percent of those polled dislike the fact that the state does not vouch for their savings in private funds.

"This is certainly connected with negative experiences with the funds from the past years," pollster Erika Kovarikova said.

"They do not know how it will work. Perhaps the worry survives," Kovarikova said.

"In all, some three-quarters voiced a general disagreement, either fully or rather disagreeing. Only 18 percent of Czechs voiced agreement," Kovarikova said.

Old people with higher education participate in some form of pension savings, but they are most reluctant to enter the system in the making.

Some 30 percent do not save for their old age at all.

One-fifth of those polled said they did not have enough money for this.

Almost 40 percent of Czechs plan to work even after they reach the retirement age and another one-fifth is considering doing so.

People aged 30-44, university-educated and businesspeople most often do not want to stop working.

Some two-thirds of Czechs do not rely on their children helping them financially after they retire.

The second pillar of the pension system, which will be voluntary, counts with transferring some money from the state pay-as-you-go pension system to individual accounts with private pension funds.

The second pillar counts with people transferring 3 percent of their pay-as-you-go social insurance to private pension companies on the condition that they add 2 percent from their pockets.

The legislation was passed by the Chamber of Deputies in early September.