Health-related problems and the unfavourable situation of elderly people on the labour market: these are generally considered the main reasons for employees in the Czech Republic retiring. In reality, however, most elderly people are not retiring because of health problems or unemployment but because they have reached the statutory retirement age. Thus they become economically inactive even though they could continue working and perform their jobs effectively.
These are findings of a study entitled A Comparative Study of Retirement Age in the Czech Republic producedby the IDEA think tank at CERGE-EI (Center for Economic Research and Graduate Education), a joint workplace of Charles University in Prague and the Economics Institute of the Czech Academy of Sciences. It provides the first detailed empirical international comparison of retirement age and age-related non-participation in the labour market using examples of different demographic groups.
Raising the retirement age is desirable
"We document that individuals' health deteriorates much more slowly than the age at which people retire and leave [the] labour market," is how authors Jona Bakalová, Radim Boháček and Daniel Münich summarise their research. They suggest early retirement is caused mainly by "the institutional set-up and motivation induced by the country's tax, welfare, and pension systems".
The aim of the study was to uncover potential risks and obstacles in relation to a faster extension of the statutory and effective retirement age. The authors add: "Our analysis does not identify any significant risks of further increasing the retirement age above its current level."
The original study in English is available for download here: A Comparative Study of Retirement Age in the Czech Republic
The Czech translation is here: Komparativní studie věku odchodu do důchodu v České republice
Videos of the presentation of the study and follow-up discussion are here (in Czech).
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