Record Number of Czechs Applying for Early Retirement

According to reports from Právo, a record number of Czechs are applying for early retirement ahead of new government policies that will take effect in October and make it more challenging. Over 92,000 people have already used for early retirement this year, up from 80,000 last year. Many people rush to take advantage of the current, more favorable conditions before changing.

Starting in October, those who retire early will have their pensions reduced more significantly than before. Those who want to retire four or five years early due to health or other reasons will no longer be able to. The new legislation will only allow people to retire three years early at most.

Additionally, from October 2022, those who wish to retire early will need to have paid into the pension system for a minimum of 40 years, up from the previous 35-year requirement.

The rush to take advantage of the current system has led to long lines at government offices, with more people expected to apply before the new policies take effect. According to one source at the Ministry of Labor and Social Affairs, around 24,000 people used for early retirement in August alone, more than double the average for previous months.

While official figures for the number of applicants are not yet available, it is clear that the number of people applying for early retirement has been steadily rising over the past few years. In 2020, less than 35,000 people used for early retirement; in 2021, the number was just under 33,000.

The increase in the number of people retiring early will lead to higher costs for the pension system. Additionally, when so many people leave the workforce, there is a corresponding drop in tax revenue, leading to billions of losses for the government.

Some experts believe that if the changes to the early retirement system had been introduced more gradually, the rush to retire early could have been avoided. However, with the new policies set to take effect in just a few weeks, many Czechs are eager to quit while they still can.