Many imagine that a pension is a kind of entitlement that arises for absolutely everyone without exception. But that’s actually not the case at all. Everyone can apply for a pension, but not everyone has to receive it. Few people really realize that this money is actually the result of whole life insurance and that merit plays a relatively large role here.
There is an old idea
For example, many self-employed persons make a big mistake, whether they are in this regime legitimately or not. If they only pay minimum deposits, they have to count on the fact that they will receive the lowest possible pension. And it’s such that you can’t make a very good living out of it these days. It is not unusual that even today someone is assessed a pension in the amount of 11,000 crowns, which may not even cover their housing costs.
Then, of course, there are people who do not work for a long time, some would even say that they are slacking off, even though they could work. In short, they are led in some kind of regime at the Labor Office, where they are invited here and there to apply for a job, but when the employer sees that the person in question is actually not interested in the job, they just give him a stamp that he has arrived and he withdraws again to the status of unemployed.
However, what happens to these people when they reach retirement age, i.e. the inflected age of 65 these days? We often hear from various sources that they are immediately granted a pension, and that right away in the average amount, which today amounts to approximately 21 thousand crowns.
It is sometimes given as an example of the state’s will, which grants the mentioned eleven thousand to working people and gives basically twice as much to non-working people. If that were the case, it would really seem unfair. But the problem is that it doesn’t really work that way, no matter how many people think it is.
“The period of unemployment during which a person is or was kept in the records of the ÚP CR as a job seeker is the so-called replacement period of insurance. It means that this period, within a certain extent set by law, is counted towards the right to a pension and its amount, even if the insurance premium was not paid for it,” you will read in a document from the Czech Social Security Administration.
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Let people try
This would really imply that if a person spends his time unemployed, he will eventually get a pension anyway. In reality, however, this is not the case at all. As part of the excluded period, you can draw a maximum of three years when you are not drawing unemployment benefits at the same time.
The state will count three years for you, but beware, not always. It is assumed here that it is more difficult to find a job in old age, but a younger person should try. Until you reach the age of 55, a single year will be counted as part of the excluded period.
Therefore, if you do not work all your life and then apply for a pension at the age of 65, you will find that you do not meet the second necessary condition, which is 35 years of service, including the excluded periods. Such a person has worked for, say, only 5 years plus another three years of excluded time. He therefore lacks the entire 27 years of work for his pension to be calculated.
Read also: Pensioners in the Czech Republic revealed a great injustice. They’re short on money, this isn’t going to go well
So these people will never actually receive their pension. On the other hand, this does not mean that they will be completely without money. They can apply for all sorts of benefits, but that’s another story. Regardless of the fact that even these funds will be significantly reduced.
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2023-12-25 15:07:53
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