Investor Presentaiton
Strong progressivity in Czech public pensions
Future net replacement rate, by earning level, %
•
120
100
80
60
60
40
20
20
Poland (65)
United Kingdom (68)
Source: Figure 1.16
vW
0.5 AvW
Japan (65)
Chile (65)
Switzerland (65)
Latvia (65)
Canada (65)
Germany (67)
Sweden (65)
Slovenia (62)
OECD (66.1)
Slovak Republic (64)
Denmark (74)
United States (67)
Czech Republic (65)
France (66)
Netherlands (71)
◇ 2 AvW
Spain (65)
Italy (71)
Austria (65)
Hungary (65)
Progressivity level is a normative,
political choice
Low replacement rates for high
earners: low returns on high
contributions
·
Current schedule is the result of
complex rules to compute benefits
Same level of progressivity can be
achieved in a more simplified way
Note: Future normal retirement age in brackets. The calculations show the pension benefits of a worker who enters the labour market in 2018
at age 22 and retires after a full career.
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