Over 70 percent of Czechs are putting money aside for retirement, yet more than two-thirds admit their savings fall short of what they’ll actually need. That’s according to Sabina Vytisková, a financial advisor at Sirius Finance, who says the minimum recommended retirement fund should be around two million crowns—a figure that seems increasingly out of reach for many.
The average Czech saver sets aside less than a thousand crowns per month for retirement, Vytisková notes. Whether that’s adequate depends heavily on when you start. “There’s a big difference between saving a thousand crowns a month from age 18 versus starting at 50,” she explains. It also depends on other financial reserves and family circumstances—and critically, on what standard of living people expect in their later years.
The inadequacy is widely acknowledged. While the majority of Czechs are saving something, most recognize their efforts won’t be sufficient. “It’s clear to them that if they’re currently putting away 500 crowns a month, the total amount won’t be enough for retirement,” Vytisková says. The problem isn’t just about discipline—it’s about understanding how money actually grows over time.
Low financial literacy compounds the issue. Many people, lacking proper information, choose products that guarantee they can’t lose money—often yielding returns below one percent. “The only thing they can be certain of is long-term loss and the devaluation of their money,” Vytisková warns. When guaranteed returns fail to keep pace with inflation, savings effectively shrink rather than grow.
Financial advisor Lukáš Formánek from Collegas identifies inefficient saving as a particular problem for people over 40. Despite improving financial literacy overall, this generation tends to save rather than invest—a crucial distinction for long-term wealth building. He points to transformed supplementary pension funds as a major red flag: returns don’t beat inflation, and the effect of state contributions is minimal over the long term. “The invested capital is losing its purchasing power,” he emphasizes.
Perhaps most concerning is the situation of approximately two million people still saving through old-style pension plans, where money is held below the inflation rate. As Vytisková puts it bluntly: instead of seeing their money grow, they’re watching it disappear.