The Czech Republic is considering a proposal from its Labour Ministry to increase the retirement age for men and childless women from 64 to 68 for people under 34 years old, 66 for those in their 40s, and 68 for those in their 50s, as reported by Czech Television. This proposal comes in response to the baby boomer generation, who are set to start retiring after 2030, and the need to maintain a decent level of pensions. The current retirement age is due to rise to 65 by 2030, but the new proposal aims to save the state 1% of its GDP, or CZK 73 billion per year, by increasing the retirement age by two years. If the retirement age is increased by three years, the state would save 1.5% of its GDP, or CZK 109.5 billion.

The proposal suggests that the retirement age should increase gradually even after 2030, by two months every year. Labour Minister Marian Jurecka also suggests that people from demanding professions, covering about half a million people, could retire earlier without sanctions. Women who have raised one child can retire at 63 years and eight months, while women with two children can retire at 62 years and eight months.

The government spokesman, Vaclav Smolka, has clarified that the proposal is still under consideration and has not yet been approved by the government. He added that the public will be informed of the final changes in time and that there would be discussions with the opposition on the issue. The opposition party ANO is ready to negotiate the pension reform, while the far-right Freedom and Direct Democracy does not support the proposal.

In conclusion, the proposal to increase the retirement age in the Czech Republic is aimed at maintaining a decent level of pensions for the baby boomer generation who are set to retire after 2030. The government is considering the proposal to save 1% of its GDP, or CZK 73 billion per year, by increasing the retirement age by two years, but the final changes are still under consideration and will be discussed with the opposition. The Labour Minister also suggests that people from demanding professions could retire earlier without sanctions.

Article by Prague Forum