Political parties in the Czech Republic have been setting out their stance on pensions ahead of the upcoming elections in October, with two of the front-running parties outlining plans to return the maximum retirement age to 65.

The Czech Parliament passed a pension reform in late 2024 to address the financial strain of an aging population, which means that, for those born after 1988, the retirement age will gradually increase from 65 to 67, reaching 67 by 2056.

However, the Freedom and Direct Democracy party (SPD) has said that, if elected, it wants to return the maximum retirement age to 65, for so-called demanding professions to 60, and also to return the increase in pension valorization.

This was also a key theme in the ANO manifesto, as the right-wing populist party also outlined plans to cap the retirement age at 65 and restore fair pension valorization as part of its plans to improve life for Czech citizens.

However, ANO went a step further, also outlining plans to expand early retirement to other demanding pensions and support seniors with valorization increasing with age.

Pensions were also a key theme in the manifesto from the Mayors and Independents (STAN Coalition) as whilst the group omitted any changes to pension ages, it still outlined plans to improve the pension system, emphasising the need for more support for early personal savings for retirement and strengthening the savings pillar of the pension system.

In line with this, the coalition said that it would look to support early retirement savings, by introducing a one-time contribution or tax deduction when concluding a pension product contract before the age of 25.

Alternatively, it said it could also introduce an opt-out system for the 3rd pillar, which would mean that when concluding an employment contract before the age of 30, the employee will automatically be offered the option to set up a contribution to supplementary pension savings, while he or she will have the opportunity to actively opt out of it.

The party also committed to removing barriers when switching between retirement savings products, and ensuring that the savings period and age are recognized as conditions for withdrawing funds.

It also committed to abolishing the penalty when switching between a long-term investment product and supplementary pension savings, thereby enabling early retirement from the new pension scheme (DPS).

The coalition also outlined plans to introduce state pension funds – a state-established or competitive pension company intended for state employees and citizens who do not choose their own provider.

In addition to this, it said that it will look to adjust the retirement savings system and connect it to the capital market, for example by introducing an obligation for pension funds to invest part of their capital in the Czech capital market.

The Spulo coalition, which includes ODS, KDU-ČSL, TOP 09, was less forthcoming on its plans for pensions, simply stating that its 2030 vision would ensure the country had a stabilized pension system, which is "predictable and, above all, fair".

Tension between the parties on pension issues was recently seen during a debate in the Chamber of Deputies, as MPs clashed on the need for broader pension reform.

ANO is currently thought to be the main front-runner in the election, with a poll from STEM agency on behalf of CNN Prima News revealing that, if held now, ANO movement would be expected to win the parliamentary elections with a gain of 32.7 percent.

The Spolu coalition (ODS, KDU-ČSL, TOP 09) would finish second with 21.3 per cent and the SPD third with 11 per cent.

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