Page 7 - IDEA Studie 9 Pracovni aktivita duchodcu

Summary

 The Czech Republic has reacted to its deteriorating demographic situation
mainly by increasing the statutory retirement age. This raises the ratio of
workers to pensioners because healthy individuals are used to working until they
reach the statutory retirement age. This policy does not, however, help to
increase the low level of employment among Czech pensioners.

 The vast majority of pensioners are voluntarily inactive. Seventy to eighty
percent of retirees report that they left the labour market voluntarily. The
majority did not suffer from health problems or difficulty finding a job at the
time of retirement. Moreover, an increase in the share of individuals limited to
work during several years before statutory retirement age cannot explain the
sudden exit of almost whole cohorts to inactivity.

 Institutional incentives for the pensioners to work, via the tax, benefit or pension
systems could contribute to an increase in employment among pensioners
because the vast majority of pensioners are able to work, but these institutions
do not currently provide such incentives, which would offset pensioners'
increased temptation to leave labour market (caused by guaranteed
unconditional income - old age pension). Tax, benefit or pension system changes

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