According to the government amendment, which still needs to be approved by Parliament, the following changes to pension savings will apply from next year:

o the threshold for the state contribution and the maximum amount of the contribution will be increased. In order to receive the allowance, you will have to save CZK 500 per month and the state will then contribute CZK 100. With each additional CZK 100 you deposit, the state contribution is to increase by CZK 20 up to CZK 340 (with a monthly deposit of CZK 1 700),

o the tax saving can be up to CZK 7,200 per year (if you save CZK 5,700 per month),

o for new contracts, the minimum period of time you must save to be able to draw money without penalty will be extended from five to ten years,

o the amendment will allow the creation of a new so-called alternative participation fund, which will have a freer investment strategy with the possibility to invest in riskier products with the potential for higher appreciation,

o existing financial products of the investment or savings type are to be given the status of a so-called long-term investment product and, if the conditions are met, it will also be possible to benefit from tax advantages in their case.

Why not just rely on the state pension?
1) The pension system is already in trouble and it doesn't look like it will improve. Society is ageing, there are more seniors and the proportion of workers earning pensions is falling.
2) According to analyses, the replacement ratio of pensions to average wages will gradually fall to around 30%. Future pensioners will thus receive only about a third of what they used to earn.
3) Seniors are most at risk of poverty. Particularly after the loss of a partner, 15% of men and up to 60% of women are at risk of poverty and are at a long-term disadvantage in terms of pensions.

You do not have to rely on the state pension alone. Take matters into your own hands and start saving for your retirement. The sooner you start, the bigger the reserve you can build up and you can retire a millionaire, and that is no exaggeration.