The average net salary is currently about 31 thousand crowns, while the average pension is less than 15.4 thousand crowns. “Despite a relatively significant increase in pensions over the course of this year, the share of pensions in salaries is steadily declining and forecasts are no more optimistic,” says Pavel Racocha, CEO of KB Penzijní společnost.

At present, about 2.2 paying per pensioner contributes to the state pension system, and as the population ages, this number is likely to decline.

“Some very pessimistic forecasts around today say that if there is no fundamental reform of our pension system, people in their forties will have to settle for a state pension of only a thousand crowns. With an average expenditure of about 10,500 crowns without six rents for a dignified life it will not be enough, “specifies Lubomír Koňák, sales director of KB Penzijní společnost, according to whom last year the difference between net wages and pensions was on average almost 17 thousand crowns.

The Czech Social Security Administration offers people a calculator to verify their future pension. Among other things, the information application is intended to motivate people to better prepare for retirement.

It will not work without savings

Lubomír Koňák, like many other financial experts, recommends saving for old age. “In order to maintain our standard of living in retirement, we must save. It is good news that 85 percent of Czechs save in the pension system privately, but the less good is how much we save. I still believe that we will take care of us and not save enough, “says the expert.

According to him, according to surveys, we have saved a maximum of half a million when retiring, but four times would be ideal, of course with regard to maintaining the standard of living from working years.

“We should start saving as soon as possible, at the latest at the beginning of the economically active age. If we start saving at 25, we should save about 10 percent of our income per month. We should have at least two million crowns when retiring. The team will avoid a dramatic decline standard of living, ”he calculates.

This is confirmed by a similar Air Bank survey, which says that young people are already aware that they will have to add additional passive income to their old-age pension, either from supplementary pension savings or return on investment.

“Respondents would like to receive an average of 22 thousand crowns a month in retirement. But young Czechs expect that their retirement regularly decreases significantly when they retire and that their dream pension is probably higher than the ten countries paid. And most he wants to prepare for it, “says Petr Šmíd from Air Bank.

According to him, only a quarter of young people intend to rely on the state pension alone. “Others are using or planning to use a range of financial products and investments to secure a comfortable retirement. However, most respondents now have only a savings account as other steps are in the pipeline. More than half of people would like to invest in real estate and return on it. retire, supplementary pension savings intend to set up more than a third of young people in the future, ”adds Šmíd.

Prague has higher pensions, but at the same time higher costs

The amount of the pension depends on the income, the highest ones are in Prague. But even the people of Prague are not retired better than the rest of the republic. Compared to average pensions, the Prague ones are only about a thousand crowns higher.

“On the other hand, there are higher expenditures, especially on housing. In September it was ‘only’ by five thousand crowns, but it expects rents to rise in the future. Last year, average wages exceeded state pensions in the capital by 33,000 crowns gross, or 22,500 crowns net.

On the contrary, the lowest average state pensions in 2020 were in the north of Bohemia, in the Ústí nad Labem region, where they exceeded CZK 13,500 by only a few crowns. The smallest drop between average wages and pensions was in the Karlovy Vary region, by almost 20,000 crowns for gross wages and 13,500 crowns for net wages.

From January 2022, all pensions granted until the end of 2021 will be valorised again. Valorisation is stipulated by law, the basic amount of pensions is increased from CZK 3,550 this year by CZK 350 to CZK 3,900. A year ago, the increase was only 60 crowns.

The percentage of the pension increases by 1.3 percent if it adds another 300 crowns. Thus, the average old-age pension will increase by 805 to 16,280 crowns from January 2022.