A recent survey reveals that 60% of Czechs believe 60 is the ideal retirement age. Yet, nearly two-thirds are concerned that government pension payments won’t be sufficient to meet their needs.
Additionally, about half of those surveyed are unsure how much money they need to save to maintain a comfortable and dignified retirement.
Sixty percent of respondents feel it’s best to retire no later than 60. Meanwhile, a quarter think they might still be working at 70, and only 7% plan to retire after that age. On average, people want to stop working nearly four years earlier than the age they could potentially continue.
The survey highlights that “for people with lower incomes, the main reasons to retire earlier are fatigue and health problems, while for those with above-average incomes, it is the desire to enjoy a well-deserved rest.”
Concerns about pension sufficiency are widespread, with almost two-thirds doubting government income will be enough. Among younger generations, “One-third of millennials (born from the early 1980s to mid-1990s) and 46% of Generation Z respondents (born around the turn of the millennium) do not know when they will be entitled to pension benefits.” Similarly, “About 46% have no idea how much money they can expect in old age,” and roughly half are uncertain about how much they should save.
Respondents commonly expect pensions in the range of 15,000 to 24,000 Czech crowns. However, they acknowledge that “the amount needed for a decent old age is higher,” creating a financial gap that must be filled privately.
The survey also points out that many people “tend to save inefficiently for retirement,” often relying on current and savings accounts, old pension funds, or building savings accounts. Experts warn these options offer “low returns or unfavorable tax regimes.” Moreover, one-fifth of people cite a “fear of losing money” as a deterrent from investing.
Financial advisors recommend developing a comprehensive plan and beginning long-term investments early. Such a plan should be reviewed annually and include “regular investments of at least one-tenth of income.” People are also encouraged to benefit from “employer contributions and tax benefits.”
Other forms of security include property ownership, and for older individuals who can no longer invest actively, “long-term care insurance may be a solution.”
