Why People Aren’t Saving for Retirement: A Look at Czech Republic’s Pension Crisis

In the Czech Republic, two-thirds of the population are saving for retirement. However, there is an alarming trend emerging. A third of the population is not saving for their pension, either because they are still young, have other priorities, or simply do not have sufficient income.

According to a survey conducted by the IPSOS agency for the investment platform Portu, most people under 26 years old are not setting aside any money for retirement. The reasons cited include the need to invest in other things or continuing education, resulting in minimal income.

Nearly one-fifth of all respondents, or 54% of those who said they do not save for retirement, do not save for their pension due to a lack of finances. Men generally save more than women, with only a third saving less than 1000 crowns. On the flip side, 17% save more than 4000 crowns monthly.

Almost sixty percent of women set aside a maximum of one thousand crowns monthly for retirement. Women in the Czech Republic still have significantly lower incomes than men on average. After paying necessary expenses, they have less money left to put aside, commented Portu analyst Lukáš Raška. This could lead to women being less financially prepared for retirement than men.

This situation is further exacerbated by the fact that women also have lower average state pensions, added Raška. This raises serious concerns about the financial stability of the future retired population, particularly among women.