The Czech government has announced a major overhaul of the state old-age pension system. The new approach, presented by the minister of labour and social affairs, Marian Jurečka, will see the pension age examined annually, based on the life expectancy of Czechia’s 50-year-olds. The guaranteed pension should correspond to 20 percent of the average wage, and will be slightly lower than pensions at present.
The reforms come as expenditure on pensions is rising sharply, now amounting to 30 percent of the state’s outlay. The government hopes that the new system will help to ensure the long-term sustainability of the pension system, while still providing a secure retirement for citizens.