How about pensions?
The average pension is currently CZK 19,438. It is therefore an amount that roughly corresponds to a gross monthly income of CZK 23,500, which is the salary of a South Moravian warehouse worker working full-time in the morning shift. Is this not enough for retired people or not? The quick, truthful, but evasive answer is that the amount fits all the circumstances and parameters that need to be taken into account and, moreover, is the result of the scant activity of politicians in this area. It should be remembered that there are one million six hundred and forty-five thousand pensioners in the country, i.e. almost one-sixth of the population is of post-productive age. Thus, any assessment, however small, will cause a dramatic cost to the state treasury. Just to illustrate: an increase in pensions, say by CZK 2,000, would burden the state treasury by nearly CZK 40 billion in the first year of its validity. The proposal for pension reform was submitted ten years ago and subsequently voted on by the right-wing formations ODS, TOP09 and with them VV (VV (Váci veřejné). The so-called second pillar of this reform offered a certain freedom in dealing with a part of one's own contributions, provided that the participant himself or herself proportionally participates in the creation of a personal cash reserve intended for old age. He was to be rewarded with an incentive bonus. The poor publicity and awareness of this idea, coupled with criticism from the opposition, meant that there was little interest in taking an active approach to controlling one's own finances. After two years, the second pillar was abolished (ANO, ČSSD, KDU-ČSL), and thus the intention to reform the pension system essentially collapsed. However, part of the process of changes in the pension system in the middle of the second decade of this century was the promise of the then government coalition to create a new pension system. This has not happened, and we are now faced with an intractable problem. We will either maintain or even slightly improve the current standard of living of pensioners and compensate for inflation. Or do we try to get the state finances under control, tame the budget deficit so that we do not have to apologise to future generations, and find measures that will be painful and unpopular but necessary. The second solution entails a very careful handling of all items that are intended to increase mandated costs. That is, including the indexation of pensions. And from the other side should come systemic interventions reducing the comfort of certain social groups and changing selected social axioms. For example, the retirement age, or the system of social benefits, and others. The issue of pensions is a politically unrewarding and risky topic, but someone will simply have to take it up. Even at the cost of ruining his career.
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