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Number of Czechs with early retirement growing

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Prague, Feb 23 (CTK) – The proportion of the elderly Czechs with permanently shortened pension, due to early retirement, is rapidly growing, having reached almost 26 percent, according to the data released by the Czech Social Security Administration (CSSZ) on Friday.

The lowered pension was paid to almost 619,000 people who received on average 10,564 crowns or 11 percent less a month than the rest.

Their pension was on average 1,282 crowns lower than that paid to the people who retire at the regular time.

At the end of last year, the CSSZ paid old-age pensions to over 2.4 million people, with the average sum of 11,850 crowns.

In 2015, early pensions accounted for less than one-quarter of all old-age pensions and in 2010 for roughly 19 percent.

It is only possible to retire early if the required time of insurance is fulfilled and at most three years remain till the regular retirement age.

However, one can only retire early at 60.

The required time of payment of insurance has been gradually rising to 35 years. It will reach the limit next year, now it is 34.

The age at retirement grows by two months and four months annually for men and women, respectively.

At present, Czech men retire at 63 and two to four months, while childless Czech women retire at 62 years and four to eight months and mothers of children even earlier.

Prime Minister Andrej Babis’s government in resignation has drafted a pension reform changing the composition of the calculated pension.

The fixed part, which is the same for all, is to correspond to 10 percent of the average salary as of next year, instead of the current 9 percent.

This will have an impact on the indexation. The model will be the same, but the sum will be distributed differently, as a bigger portion will be sent to the fixed part.

The change will rise low pensions, but slow down the increase in roughly one alf of all pensions, Labour and Social Affairs Minister Jaroslava Nemcova (ANO) said earlier this week.

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