Table: Retirement age after increase. How does early retirement work?

The retirement age in the Czech Republic has steadily increased over the years and is still increasing. The pension reform also envisages a further extension of the retirement age beyond 65. At the same time, the increase in the retirement age affected women who raised more children the most.

In the attached table below, we have listed the regular retirement age for selected years of birth, which is an appendix to the Pension Insurance Act No. 155/1995 Coll.

From the attached table we can see that women born in 1940 who raised two children had a regular retirement age of 55 years and women born in 1965 who raised two children have a regular retirement age of 64 years and 8 months, that is an increase of the regular retirement age by almost 10 years.

Due to the gradual unification of the retirement age for both men and women, the regular retirement age for women has increased more over the years than for men.

Year of birth	Men	Women (by number of children)
		0	1	2	3 and 4	5 and more
1940	60y + 10m	57 years + 8 months	56 years + 4 months	55 years	54 years	53 years
[1945	61 years + 8 months	59 years + 4 months	58 years	56 years + 8 months	55y + 4m	54 years
1950	62 years + 6 months	61 years	59 years + 8 months	58 years + 4 months	57 years old	55 years + 8 months
1955	63 years + 4 months	62y + 8m	61 years + 4 months	60 years	58 years + 8 months	57 years + 4 months
1960	64 years + 2 months	64 years + 2 months	63y + 8m	62 years + 2 months	60y + 8m	59 years + 2 months
1961	64 years + 4 months	64 years + 4 months	64 years + 2 months	62y + 8m	61 years + 2 months	59 years + 8 months
1962	64 years + 6 months	64 years + 6 months	64 years + 6 months	63 years + 2 months	61 years + 8 months	60 years + 2 months
1963	64 years + 8 months	64 years + 8 months	64 years + 8 months	63y + 8m	62 years + 2 months	60y + 8m
1964	64y + 10m	64y + 10m	64y + 10m	64 years + 2 months	62y + 8m	61 years + 2 months
1965	65 years	65 years	65 years	64 years + 8 months	63 years + 2 months	61 years + 8 months

Source: Annex to the Pension Insurance Act No. 155/1995 Coll.

Breaking the age limit of 65 years

The planned pension reform envisages a further gradual increase in the regular retirement age above 65. If the legislative process is successful, this increase would apply to people born in 1966 and later. For now, the retirement age for people born between 1966 and 1972 is planned as shown in the table below. Subsequently, the retirement age would increase depending on the average life expectancy of 50-year-old citizens.

1966	65 years + 2 months	65 years + 2 months	65 years + 2 months	65 years + 2 months	63y + 8m	62 years + 2 months
1967	65 years + 4 months	65 years + 4 months	65 years + 4 months	65 years + 4 months	64 years + 2 months	62y + 8m
1968	65y + 5m	65y + 5m	65y + 5m	65y + 5m	64 years + 8 months	63 years + 2 months
1969	65y + 7m	65y + 7m	65y + 7m	65y + 7m	65 years + 2 months	63y + 8m
1970	65y + 7m	65y + 7m	65y + 7m	65y + 7m	65y + 7m	64 years + 2 months
1971	65y + 7m	65y + 7m	65y + 7m	65y + 7m	65y + 7m	64 years + 8 months
1972	65y + 7m	65y + 7m	65y + 7m	65y + 7m	65y + 7m	65 years + 2 months

Source: Proposal of the Ministry of Internal Affairs and Communications

A higher retirement age will reduce pensions

Increasing the regular retirement age will mean a reduction in monthly pensions for many people, as they will not be able to work until reaching the regular retirement age for health and work reasons and will choose early retirement or early retirement.

Reduction in early retirement

When retiring early, it is necessary to take into account a reduction for early retirement, which amounts to 1.5 percent of the calculation base for every 90 calendar days of early retirement. At the same time, it is possible to take early retirement three years before reaching the regular retirement age.

Citizens opting for early retirement subsequently have limited valorization, where they are only entitled to an increase in the basic amount of their old-age pension until they reach the regular retirement age.

The pre-retirement period does not increase the insurance period

When choosing pre-retirement, i.e. own funds saved from the supplementary pension savings contract, and then retiring to a regular old-age pension, the monthly pension is considerably higher than when retiring early, as there is no reduction, but it is still lower than when is worked until the proper retirement age is reached. The period of pre-retirement drawdown itself does not increase the insurance period affecting the amount of the old-age pension.