Page 6 - IDEA Studie 7 2018 Pruvodce seniora

 For those who after leaving their original employment early do not want to return to work, it can be most advantageous from the perspective of their total future incomes to register as unemployed, rather than to take early retirement. Registering as unemployed is – for a typical older person with a gross monthly income of 30,000 CZK – more profitable financially if the individual in question will live longer than 11 years after reaching retirement age. If they live 30 years beyond retirement age, registering as unemployed can increase their total future real income by more than 500,000 CZK.  Those who no longer wish to work but prefer to have a stable and relatively high net income in the remaining period before they reach statutory retirement age may choose to take early retirement. The cost of doing so is that they will have a lower old age pension later on and lower total future real income. For a typical older person whose original gross monthly income was 30,000 CZK taking early retirement reduces their monthly pension after reaching retirement age by nearly 2,500 CZK. Their total future real income, if they live for thirty years beyond retirement age, will be nearly 900,000 CZK lower, than if they had chosen to work at 70% of their previous gross salary and receive a pre-pension. 4