Kontakt 2018, 20(2):e201-e208 | DOI: 10.1016/j.kontakt.2018.01.001

How profitable are savings in the third voluntary pillar of the Czech pension system?Social Sciences in Health - Short communication

Jan Molek^*

Jihočeská univerzita v Českých Budějovicích, Zdravotně sociální fakulta, Ústav humanitních studií v pomáhajících profesích, České Budějovice, Česká republika

Saving in the third voluntary pillar of the pension system is very popular in the Czech Republic. At the end of 2016, a total of 4 518 832 citizens had savings accounts. Total savings were 383,032.01 million CZK. One of the fundamental problems of the third pillar, which does not contribute to its popularity (especially in young generations), is a low deposit valorisation. The reason is that the valorisation often covers only the inflation and sometimes, not even as much. The situation would be even worse if there were not financial support from the state in the form of contributions and tax reliefs or from employees.

Keywords: Retirement insurance; Supplementary insurance; Transformed funds; Contributory funds; Inflation

Received: September 14, 2017; Revised: November 29, 2017; Accepted: January 5, 2018; Published: June 26, 2018  Show citation