Incoming government plans pension savings reform

The emerging coalition of ANO, the Freedom and Direct Democracy (SPD) party, and the Motorists’ party plans major changes to pension savings, according to the news server Seznam Zprávy. The parties promise to expand state-supported retirement schemes and encourage younger people to start saving earlier. ANO proposes higher state contributions for those under 30 and lower fees for pension funds. SPD wants to establish a state-run pension fund with guaranteed returns and to restore state contributions for retirees. The Motorists’ party calls for a voluntary pillar promoting investments in socially beneficial sectors such as healthcare and infrastructure. The idea of stronger state involvement in pension savings is not new. The previous government also promised a public pension fund and lower management fees, but those plans never materialized. Economists note that the success of the new reform will depend on details such as what assets the fund will invest in and who will manage it.