The retirement age is in line with life expectancy


Petr Fiala’s government intends to move the retirement age forward by relying closely on the development of life expectancy. (Photo: 123RF)

The government of the Czech Republic will change the retirement age depending on changes in life expectancy.

While the Czech Republic spent the equivalent of 9.4% of GDP on pensions last year, the government approved a deep reform of pension financing.

Petr Fiala’s government intends to move the retirement age forward by relying closely on the development of life expectancy. To this end, the retirement age will be adjusted as life expectancy changes. Workers will know their starting age when they turn 50, Reuters reports.

In this country with almost 11 million inhabitants, the average life expectancy at birth is 76 years for men and 82 years for women, according to data from the Czech Statistical Office from 2022.

In the short term, workers who are currently 52 will retire seven months later than the legal age of 65. In addition, the amount of pensions will be reduced by 8%.

The Czech government says it wants to prevent the collapse of the pension system and guarantee decent pensions for young workers. Last year, the pension system recorded a deficit corresponding to 1% of GDP.





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