The Czech Republic, like many advanced OECD countries, is facing significant demographic challenges. Over the coming decades, public pension spending as a share of GDP is projected to rise—though not to an extreme level by EU standards. Retirees rely heavily on income from public funds, while earnings from personal savings remain minimal, even by international comparison. To ensure the long-term sustainability of the pension system, revitalizing the third pillar of retirement savings will be essential.

Key takeaways:

• By 2060, public pension spending is projected to rise by 3 percentage points of GDP— bringing it to a level that some countries are already spending today.
• Just 2.4% of the income of Czech households with members over 65 comes from private, non-work sources—one of the lowest proportions in the OECD.
• Policymakers are therefore encouraged to take steps to reinvigorate the third-pillar pension system, boosting both participation rates and the value of individual savings.

Policy Paper– Martin Zeman

The analysis is in PDF under the link below.