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Pension savings schemes with state contributions in the Czech Republic: a prop rather than a pillar
Šatava, Jiří
The third pillar should appropriately complement the first pillar, which is thecornerstone of the pension system. It should therefore be set up such that the level ofpayments from third pillar savings reflects how great a proportion of people’s netincomes is replaced after retirement by their old age pension from the first pillar. In this study we analyse working people’s savings behaviour dependent on how largea proportion of their net incomes will be replaced, once they retire, by their statepension from the first pillar. The first pillar old-age pension pays out a lowerproportion of incomes for employees with higher salaries and for the self-employedin particular. Payments from third pillar savings should therefore play a larger rolefor these people.
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Obesity in the Czech Republic: an international comparison using data from the SHARE project
Pertold, Filip ; Šatava, Jiří
The World Health Organization considers obesity to be one of the greatest challenges for\npublic health in the 21st century. On the basis of data from SHARE, we show that Czechs aged\n50-70 years have a high rate of obesity (BMI > 29,99) in comparison with other countries.\nIn 2015 around 35 % of older men in the Czech Republic suffered from obesity, that is almost\ntwice as high as the rate in Italy or Switzerland and more than 50 % higher than the rate\nin Western European countries (c. 23 %).
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Senior guide: how not to lose income while taking early retirement
Šatava, Jiří
This study quantifies the financial consequences of six basic options for a number of typical individuals who leave their jobs “by agreement” two years before reaching statutory retirement age. It also outlines the non-financial conditions and consequences of these options. The ideal compromise between the financial and non-financial consequences of each option is left to the preferences of particular individuals.
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Growth in individuals’ disposable incomes between 2005 and 2015: whose income improved?
Janský, Petr ; Šatava, Jiří
Individuals' disposable incomes increased on average by 22 % between 2005 and 2015, and therefore more rapidly than real wages did (18 %). Therefore, in 2015 half of the Czech Republic’s population had a monthly disposable income of more than 15 300 Kč and the mean monthly disposable income stood at 17 100 Kč. The relative differences in individuals' disposable incomes moderately decreased between 2005 and 2015, despite widely held beliefs to the contrary. From an international perspective, the Czech Republic thus remains one of the countries with the lowest inequality in disposable incomes.
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IDEA for the 2017 elections. Pensions and pensioners in election manifestos
Pertold, Filip ; Šatava, Jiří
In 16 of the past 20 years the pensions system’s expenditures have exceeded its revenues. Since 2010 the pensions deficit has reached 260 billion crowns. That is more than twice the total government expenditures on salaries in 2016. Nevertheless, in their election manifestos the parties do not declare any estimate the costs of their proposed measures, nor suggest what resources would be used to fund them. This suggests that the state budget will continue to fund a growing pensions deficit, to the detriment of other public spending.
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IDEA for the 2017 elections. Seniors' income: work, retirement pensions and their valorisation
Šatava, Jiří ; Pertold, Filip
Pension valorization settings are crucial in determining how the value of the old age pension will develop in the coming years. At present, the system is set to maintain individuals' real purchasing power throughout their retirement at the level they enjoyed during their working life, but in reality it usually lags behind natural growth in real salaries. The higher the initial old age pension, the more it will lag behind in this way. The way in which the pensions system is currently set up relatively effectively protects Czech pensioners from falling below the poverty line. The seven percent share of the population aged over 65 years who fall below the line is the fourth smallest in the EU. Nevertheless, in most cases the pensions system does not protect pensioners from a substantial reduction in quality of life.\n
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The impact of motherhood on retirement benefits
Šatava, Jiří
In our analysis, we have attempted to quantify the negative impact of motherhood and parenthood on women’s retirement benefit amount, which is linked to the impact of motherhood on the mothers’ wages and employment. We have calculated that motherhood and parenthood reduces women’s retirement benefits by an average of several hundred Czech crowns per month. This is caused both by lower employment and lower earnings due to parenthood. However, the average reduction in women’s retirement benefits due to parenthood never exceeds 8 percent, even if the impact of parenthood on women’s career were twice that shown in the data.
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The tax system reduces motivation to return to work among mothers with young children: recommendations and evaluation
Šatava, Jiří
In the Czech Republic, the overall taxation of work, i.e individuals' income tax together with social security and health insurance contributions, places a heavy burden even on the relatively low earnings of so-called second earners in households, i.e. partners with lower earnings. These peoples' work activity is, however, generally very sensitive to the level of taxation. A large group of these earners is made up of mothers with young children. Mothers who are the second earner in their household are subject to a participation tax rate (PTR) up to 30 % higher than their partners, and yet a higher PTR results in lower motivation to work. Women with children and low earning potential are subjected to the highest PTRs in comparison with their partners.
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Divorces and women's income: initial findings for the Czech Republic based on individual data
Janský, Petr ; Pertold, Filip ; Šatava, Jiří
In most cases, divorce leads to a radical change in life situation with many consequences for both divorcees. Nowadays nearly half of all marriages in the Czech Republic end in divorce and so this has been and will continue to be part of life for a significant proportion of the country's population. The consequences of divorce are highly influenced by the division of labour within the couple prior to their separation. There is a high level of division in most Czech families. Women spend much more time caring for children, relatives and the home, while men are largely focused on paid employment. We estimate that married women aged 20 to 70 who are neither studying nor in receipt of an old-age pension would see their net incomes fall by 20 % if they ceased to share income within their household (e.g. as a result of divorce and separation). Households led by divorced women report some of the lowest incomes per household member. The average income in a female-led divorced household is one fifth lower than in married households and a quarter lower than in households led by divorced men. Divorced women are, however, more economically active than married women; this is probably a reaction to their loss of income following divorce. Nevertheless this difference could also suggest that women who are economically active are less attractive as partners (Bertrand, 2016).
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Supporting families with children through the tax and welfare system
Šatava, Jiří
The state may provide financial assistance to families with dependent children either by reducing their tax burden or by increasing their welfare benefits. Both means of support increase their net wage, thus providing financial support. This paper provides an overview of financial support amounts provided to families with dependent children or families with the youngest child aged 1 to 3, and of measures limiting such support. The lower tax burden of families with children ensues from lower income tax, not from the social and health care security systems. Within this system, tax support provided to families with children is comparable to that provided to low-income families without children. Additional support provided to families with children includes tax benefits tied directly to children in the family, and tax credit for a dependent spouse. Should the tax system not provide such benefits, families with children, or rather families with a youngest child aged 1 to 3 would have a higher effective tax rate than childless families with comparable income.
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