General info

Old-age pension

This guide explains the old-age pension. The first thing to understand is that the Czech system is based on two main principles. It balances the principle of rewarding personal achievements with solidarity. What it means in practice:  by law, every economically active person in the CR has to contribute to the in-use pension fund for retired people of today; you aren’t saving the money for your own retirement.

We give you a brief overview of what your options within the Czech pension system are in case you plan to spend your retirement here.

Czech pension system

The Czech pension system regulates two components. One is mandatory, the other is optional. And on top of that, you can always save/invest locally or globally, without government intervention.

For those who are familiar with EU pension pillars, the Czech Republic regulates these:

  1. First pillar – the key system based on a running basis (pay-as-you-go), with contributions from the economically active going to the in-use pension fund to today’s retired.
  2. (Second pillar, employer pension schemes, is absent in the Czech pension insurance system.)
  3. Third pillar – a voluntary, complementary pension saving option with state contributions.
  4. Global savings and investments.

The Czech pension system regulates two pillars (1 and 3). One is mandatory, the other is optional. And on top of that, you can always save/invest locally or globally, without government intervention.

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