The Minister intends to integrate the state’s Pension Information App with online banking, a move that banks are receptive to, although it is still in its early stages.
Upon logging into your online banking account, you will be able to view an approximate estimation of your retirement pension, along with details about your account balance and mortgage repayments. This is the vision of Labour and Social Affairs Minister Marian Jurečka (KDU-ČSL).
Jurečka explained in an interview with Ptám se já on Seznam Zprávy that the aim is to enable individuals to assess their life strategy and ensure it aligns with their desired standard of living during retirement. He emphasized that this integration would also serve as a form of financial education.
“We want to link the Czech Social Security Administration’s app, which provides a preview of one’s pension based on insurance history, with electronic banking,” Jurečka stated.
Jurečka further elaborated on the benefits during a public discussion at the University of Economics, stating, “This initial stage allows us to provide individuals with some indicative information.”
However, implementing this integration requires legislative changes. The Ministry of Labour and Social Affairs’ press department clarified that the concept is still in its early stages, making it difficult to estimate when bank clients will be able to access indicative pension amounts through online banking.
Jakub Augusta, spokesman for the ministry, explained, “Connecting the system directly with banks involves sharing client data between the public and private sectors, which necessitates a well-defined legal framework.”
While representatives from the banking sector appreciate the idea, they confirm that it is still in its infancy.
“We received an offer from the Ministry of Labour and Social Affairs to collaborate on pension reform, particularly in terms of promoting citizen accountability for their pension funds. We are now awaiting further details on the pension reform, which will likely be available in the coming months,” responded Radek Šalša, spokesman for the Czech Banking Association.
Banks view the display of indicative pension amounts as an additional service for their clients. Patrik Madl, spokesman for ČSOB, highlighted that ČSOB’s Smart mobile banking app already allows clients to view their current pension savings balance and contributions.
František Bouc, spokesman for Česká spořitelna, stated, “This aligns with Česká spořitelna’s focus on the financial well-being of its clients. Information about the expected pension amount can encourage individuals to save more or invest further.”
The banks have previously conducted tests involving linking clients to the Citizen Portal. Bouc mentioned that respondents considered accessing the Citizen’s Portal via internet banking to be highly secure, and many expressed appreciation for the convenience of the procedure. Additionally, the tests revealed that people did not generally expect their banks to connect them to government services.
Veronika Kalátová, a financial literacy lecturer, welcomed the inclusion of indicative pension amounts within online banking, emphasizing the importance of visibility. She recommended that individuals place such information in prominent locations, such as on their refrigerators, to serve as a daily reminder of their financial goals.
However, Kalátová cautioned that the Retirement Information Application often lacks accuracy due to missing information, such as children or periods of study. Nonetheless, she considered this integration to be a step forward, suggesting that online banking should clearly indicate that the displayed pension calculations are only estimates for future reference.
