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State Decision to Cut Pensioners’ Benefits Sparks Outrage

Last year, the state took pensioners to task and decided to save on them. On the one hand, this is completely legitimate when the budget and the pension system are running high. However, it turns out that he does not do so very sensitively and prudently.

Advantage ends

First of all, he canceled the extraordinary valuation and, in addition, lowered last year’s, which should have already been paid. Pensioners thus lost a lot of money. However, it can be argued that they did not feel it as much because it had not yet been recognized.

But it does not end there. The next trouble from the point of view of pensioners is planned for July 2024, when there will be a change that will affect a large number of pensioners financially. And that of all those who are still saving for retirement in retirement savings.

This is supported by the state, even with a monetary amount that can reach up to CZK 340. It is logically a very attractive way of saving for pensioners, but now it will end. And it’s not like this whole state-subsidized product is going to be scrapped.

Foto: Shutterstock

A big blow to pensioners

All that will happen is that pensioners will no longer be entitled to state benefits. “I really don’t understand this. I saved here for a long time and I was pleased that I finally reached the maximum state support. But now they told me that they will cancel it and it’s no longer worth it,” says seventy-five-year-old Mrs. Anežka.

According to the Ministry of Finance, pensioners are not entitled to such support, as they are already retired, so why should they be supported to save for it. However, this argumentation is lame, as pensioners can reply that this way they will save for the next years in retirement, which may be more difficult than the current ones, which is apparently also true.

Read also: Pensioners in the Czech Republic are in for a big change. Spouses will have to divide their pension

In addition, everything is handled in a very customer-friendly manner. Not only will it be retroactive, so everyone is really out of luck, even with older contracts. In addition, people who have been saving for less than 5 years run into problems. After changing the conditions, it would be possible to cancel the entire product, but this is only possible after five years. Anyone who does this earlier will also lose the already paid support, which they will have to return. The ministry did not want to take a favorable step in this regard either.

Foto: Shutterstock

2024-02-11 20:00:00
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