“The discussions quickly died down. It would mean another hole in the budget. We would have one percent less in pension insurance withdrawals, that’s about 20 to 25 billion,” Pertold told Právu.
According to him, the government’s original plan, which it promised back in March in its updated program statement, would also disadvantage pensioners who would not have descendants willing to contribute. “I didn’t like the fact that it was voluntary either. There would be pressure on families to come to an agreement. But what if they don’t agree?” he asks.
The state will support new old-age savings from January, most people welcome it
At the same time, ODS, TOP 09 and KDU-ČSL promised this measure even before the elections in 2021. “Everyone will get the opportunity to pay one percentage point of their pension insurance directly to their parents or grandparents,” the parties lured voters.
As well as promising to reduce the conditions of the time required to draw a pension from 35 to 25 years. This also subsequently appeared in the government’s program statement, Labor Minister Marian Jurečka (KDU-ČSL) even drafted the relevant amendment last year, but ultimately did not present it. The pension amendment no longer provides for a reduction, on the contrary, the period for the possibility of drawing an early pension has been extended to 40 years.
According to Pertold, this is an unnecessary tightening in the reform. “The vast majority of people who applied for early retirement did,” he noted. ODS MP Jan Bauer regrets that the government backed away from its original promises. However, he is not waiting for the will to change. “According to the coalition agreement, these measures will not be taken yet,” he told Právu. “We have assessed that it carries a cost to the budget,” he explained.
He will submit another amendment
Next year, the Ministry of Labor will present another change, which should concern the third pillar. “We will support voluntary pension savings, for example in the form of a long-term investment account,” states the government’s March program statement.
So far, the commission for pension reform has discussed changes in the so-called supplementary pension insurance. “It will be addressed in the second phase of the pension reform in 2024. There will be changes in relation to savers and employers,” said Bauer.
Young people should be more motivated to save larger amounts into the pension system. Employers will also be motivated to contribute more.
Jurečka is going to present the pension reform to the government these days. The retirement age will be adjusted according to the development of life expectancy every year for people who are 50 years old. The guaranteed pension should be about 20 percent of the average wage. The reform should also allow for a common basis for calculating the spouses’ pension.
State pension spending is growing every year, now accounting for over 30 percent of state spending. Last year almost 600 billion was paid out in pensions, this year it could be about 90 billion more.
Expert: People will retire early even after conditions worsen
2023-10-08 01:24:05
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