News

The state pension won´t be enough for life

21/11/2013

Only one out of ten Czechs expect to get by with state pension in retirement. In the Czechs´ hopes and fears 2014 research conducted by MindBridge Consulting 90 percent of respondents, aged 18–60 years, said that the state pension will not ensure them respectable retirement.

“Czechs know this for the long and that is why more than 5 million of them have the retirement saving. Already low confidence in abilities of state´s elites to ensure ordinary living even dropped in the last year. One reason for this decrease is also the public debate, provoked by state pension reform, about population ageing and real spending power of state pension in long-term prospects,” says Ladislav Klika, CEO of MindBridge Consulting.

Optimists decrease in number…
“When the people my age will go into retirement, the state pension will be in average so low that the respectable retirement will be impossible without additional aid.”
The proportion of optimists fell down by 17 points in comparison to the last year’s research wave when even one tenth of respondents absolutely relied on the state pension.

…and the size of pessimisms increase
While half of respondents said the state will definitely not guarantee the respectable level of state pension, only 37 percent agreed with this statement in the last year´s research. The women are more pessimist (55 percent) than men and younger respondents are more pessimist then the oldest respondents (18–24 year olds – 57 percent, 45–60 year olds – 44 percent).

Solution
The younger people mentioned various saving forms, setting part of income aside or investing. The older people saw as a solution later retirement or saving on cost of living (i.e. smaller flat, growing own fruit and vegetable or previous savings).

About measuring
Czechs´ Hopes and Fears 2014 research analyze stances of economically active population. It surveys the opinion trends which affect households’ consumption, population´s at­titudes and political preferences. The research was conducted in august 2013 on the representative sample size of 1500 national population aged 18 to 60 years (region, settlement size, education and income) via CAWI method of data collection.

Jana Hotmarová
MindBridge Consulting a.s.
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