Ageing and Retirement Age in the Czech Republic

In the Czech Republic population ageing is becoming a serious problem at the labor market, financial stability, pension system, health and social care. Before principal changes in the pension system are prepared and confirmed, some parametrical changes have been introduced since 1994 till 2011. One of the fundamental changes is prolongation of retirement age (without any stopping rule) and different prolongation for males and females. It has significant consequences to dependency ratios and other indicators. Unlike the calculation with fixed limits, where the total dependency ratio gradually grows, the scenario referred to as ‘REAL’ does not seem as negative as it is often described. In this case, the TDR ranges between 1.67 and 1.84 in the basic version. This calculation should support wide discussions regarding the pension system and its reform. In 2060, a person of economically active age should support himself/herself and another 0.84 individuals of economically inactive age.

CO-AUTHORS: Tomas Fiala, Jitka Langhamrova, Jindrich Klufa