The Czech Republic’s Minister of Labor and Social Affairs, Marian Jurečka, has presented the basic parameters and outlines of a proposed pension reform to President Petr Pavel. Jurečka stated that the key aim of the reforms is to ensure that younger generations and today’s forty-year-olds will have a sustainable pension system in the future. Jurečka discussed several issues related to pensions, including the retirement age, with President Pavel during the meeting.

Jurečka emphasized that the retirement age limit will be linked to how life expectancy develops in the future. The proposed reform aims to anchor the principle that the average duration of pension payments is currently 21.5 years and to ensure that it remains achievable in the future. Jurečka added that the retirement age limit should be linked to the person’s entry into the labor market, their insurance period, and their profession.

While Jurečka does not plan to raise the retirement age, he admitted that the limit might change depending on life expectancy. He stated that there is no certainty that life expectancy will increase, so the limit could decrease. The final version of the pension reform will be presented in mid-May, where Jurečka will provide more details about the proposal that pensions could be calculated from the joint income of married couples.

The need for pension reform has been emphasized due to demographic changes, with the population aging and birth rates declining. Jurečka stated that if no action is taken, the pension account could run into a deficit of more than 5% of GDP by around 2050. This represents a shortfall of CZK 300 to 370 billion in today’s prices, which would have to be covered by other parts of the budget.

In conclusion, the proposed pension reform aims to ensure that the younger generations and today’s forty-year-olds have a sustainable pension system in the future. While Jurečka does not plan to raise the retirement age, he admitted that the limit might change depending on life expectancy. Jurečka will present the final version of the pension reform in mid-May, which will provide more details about the proposed reforms.

Article by Prague Forum