If you do not want to take care of the additional financial provision for old age, you have to accept the fact that you will not get the proper standard of living without your own contribution. The basis is the use of state-supported products. They are privileged to encourage people to postpone part of their income to the future. For example, the state contributes up to CZK 2,760 a year for supplementary pension savings. In addition, it is possible to deduct from the tax base up to 24 thousand crowns a year instead of the previous 12 thousand from 2017. "Pension savings are especially beneficial due to state contributions. However, the valuation is not guaranteed for participating funds and last year was also negative. But the funds have a dynamic strategy, " says Miloslav Kufa (Ramfin). But by using the state's maximum support, people would not end up investing. "We encourage people to take full advantage of the state, but also to invest more free funds. Regular diversified investment has long been the best way to secure the required reserve, " adds Miloslav Kufa.
Besides the voluntary creation of a financial reserve, people should also be interested in receiving from the state pension system. Few people realize that tens of thousands of crowns per year can be lost due to poorly calculated retirement . Due to the shortcomings in the CSSA's record of lacking insurance periods, people can get a lower retirement pension than they should and, of course, lower retirement benefits. If the CSSA does not receive the necessary information from an employer, it can not include all insurance periods in the pension calculation.
The insurance information sheet for pension insurance (IOLDP) is used to check the insurance period at the CSSA. This list of insurance periods from CSSA records can be applied once a year. If you do this regularly throughout your active life, you will be prevented from calculating your lower state pension. "Our analysis shows that the difference between a pension calculated on the basis of incomplete CSSA data and the reality of several thousand Czech crowns a month may be the difference," says Stanislav Hlaváč, consultant of Freedom Financial Services. However, the greatest effect can be achieved with self-employed and business owners. "It is possible for entrepreneurs to optimize current revenues, which brings them savings on government levy. Therefore, it is not primarily a higher state pension, but thanks to the reduction of the expense allowance it is possible to provide additional pension income in another way, " adds Stanislav Hlaváč.
Source: tz, edited editorially
