Service description
Why set up a Pension Savings Plan (Penzijko)?
State contribution
The government contributes to your future savings every month. The amount depends on how much you save yourself.
For example:
- Contribution of 500 CZK → you get 100 CZK from the state
- Contribution of 1,000 CZK → the state adds 200 CZK
- Contribution of 1,700 CZK or more → you receive the maximum 340 CZK
Tax benefits
If you save more than 1,700 CZK per month, you can reduce your tax base by up to 48,000 CZK per year.
- At maximum usage, you can save up to 7,200 CZK annually on taxes
Employer contribution
Pension savings is one of the most popular employee benefits.
Employer contributions of up to 50,000 CZK per year are not subject to social or health insurance.
Investment growth (strategies)
- Conservative: Money is invested in government bonds and term deposits. Focus on capital protection and stable, lower returns. Suitable for short investment horizons.
- Balanced: A mix of stocks and bonds. A middle ground between risk and return.
- Dynamic: Mostly invested in equities. Higher volatility, but the highest long-term growth potential. Ideal for a horizon of 10+ years.
Flexibility
You can at any time:
- Change your monthly contribution
- Switch investment strategy
- Pause contributions
Payout options in the future
- Lump sum: Full withdrawal at once (note possible taxation of employer contributions and returns)
- Lifetime pension: Regular monthly income for life
- Early retirement (pre-retirement): Access your savings up to 5 years earlier without state penalties
Want to see how much you could gain personally?