Poll: Czechs' interest in new state pension system on decline

Prague, Jan 3 (CTK) - Czechs' interest in the new state pension system has decreased from 11 percent in summer last year to the current 4.8 percent, according to AWD's Pension Barometer survey conducted in December.

Among almost 1,000 respondents aged between 18 and 24, there was no one to say he/she wanted to enter the second pillar of the pension system.

The biggest interest was expressed by people in the age group of 35 to 44 years (8 percent).

"There is a simple reason behind the lower interest of the public in the second pillar," said Tomas Rampula, an analyst at the consulting company AWD.

"Last year the majority of people did not know how the new system would work, while now they have the opportunity to get acquainted with the concrete parameters. The more information they have, the lower their interest in entering it," Rampula said.

This, however, does not mean that people do not want to save for old age, according to him.

"We see an ever higher number of our clients asking about suitable alternatives to the second pillar," said Rampula.

People aged over 18 years who do not get pension can enter the second private pension pillar as of January 1 this year.

Citizens above 35 years of age may join the second pillar by July 1, 2013 at the latest and those under 35 can do so by the end of the calendar year they reach this age at the latest.

The pension reform including the introduction of the second pillar was passed by the lower house of parliament last November. The Chamber of Deputies outvoted the veto of President Vaclav Klaus.

Pension companies on Wednesday signed the first contracts on savings in the second pillar and on supplementary pension savings with state contribution in the third pillar.

Client interest was not big, they said.

Three percentage points from social insurance payments can be diverted to the second pillar as of January, plus two percentage points from people's income.

Prime Minister Petr Necas estimated earlier that it could be advantageous for a half of the population to join the second pillar.