Czech pension system sees deficit of over CZK 40 billion in Q2

The Czech pension insurance system in the second quarter of 2023 ended with a deficit exceeding CZK 40 billion, according to Finance Ministry data released on Thursday. That figure is almost as high as for the whole of 2020.

Expenditures in the first six months of 2023 have risen by CZK 56.5 billion year-on-year. Revenues have also been rising, but not enough to cover the cost of pensions.

Despite the reduction of the indexation of pensions, a deficit of around CZK 80 billion is projected in the pension system this year with a total of around CZK 690 billion to be paid out, which corresponds to 30 percent of state spending.