Tuesday, 28 March 2017

Czechs receive pension for average 24 years, time extends

ČTK |
12 January 2017

Prague, Jan 11 (CTK) - The time Czechs spend in retirement has increased by an average of four years to about 24 years in 2015, according to the data contained in the pension statistical yearbook of the Czech Social Security Administration (CSSZ) released on Wednesday.

Women spend an average of 27.5 years in retirement, men 19 years.

This is connected with the lifespan being extended. It has increased by more than four years in Czech men and three years in women since the beginning of the millennium.

As from the end of last September, old-age pension was received by 2.39 million people in the Czech Republic with a population of 10.5 million. As from the end of 2000, there were 1.91 million men and women in retirement.

A pension commission of the Labour and Social Affairs Ministry, which is comprised of representatives of political parties and experts, says a person should spend about a quarter of their lives in retirement.

This principle was approved at the end of 2014. It also proposed that the retirement age be reviewed every five years and adjusted depending on the developments of lifespan.

The government is pushing for retirement age being set at 65 years. The draft amendment has already been sent to the Chamber of Deputies.

The retirement age has been gradually extended, due to which the number of old-age pensioners is not rising steeply, and this also contributes to the sustainability of the pension system.

Under the communist regime, men retired at 60, women between 54 and 58 depending on the number of children. Now, men's retirement age is extended by two months and women's by four months every year. This gradually deletes the difference between men and women.

In 1970, people spent an average 11 years in retirement. Men's lifespan was 66 years and women's 73 at that time.

According to a study by the Institute for Democracy and Economic Analysis (IDEA) of Charles University, Czechs retire mainly because they have reached retirement age even though their financial situation worsens and they are not even forced by health.

The study authors said retirement is an unnecessary loss for society. People still have enough forces, much experience as well as economic potential.

Education plays an important role in people's deciding on retirement. The higher education, the bigger motivation people have to continue working, the study found.

Average length of taking old age pension in selected years

Year Average time spent in retirement
1970 11
1980 13
1990 16
2000 19.96
2005 21.67
2010 22.79
2015 23.97
Source: Statistical yearbook of pension insurance, CSSZ

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