How to keep your living standard in retirement

In 2005, one citizen employed 5.6 citizens of economically active age. In 2050, 1.8 citizens are expected to work for 1 pensioner.

Do not rely on the Social Insurance Agency for yourself

Whether we like it or not, years are growing. We are retired and looking at the size of the social insurance company and the amount of pension granted, we will only have eyes for crying. The problem is in global population aging and demographic developments. Finally, this topic is no longer taboo and is publicly discussed.


In 2005, one citizen employed 5.6 citizens of economically active age, and in 2050, 1.8 citizens are expected to work for one pensioner. Despite this information, the Slovaks’ indifference to the future is alarming. An age category of 30-60 years, which is people at a time when retirement savings are inevitable, they do not even think about it in the majority. They save on anything possible and impossible as a new car, television, holiday, etc., but they don’t even think about retirement when they will have limited income.

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In view of the above, therefore, the creation of own resources for retirement is inevitable and reliance on the state is shortsighted. Who wants to have a roughly balanced income even in retirement, should put aside 10% of income and combine different ways to capitalize on it.

It is advisable to combine 4 retirement schemes

II pillar – pension saving

III pillar – supplementary pension saving

Investment life insurance – long-term saving

Funds – direct investment in savings plans eg. regular investment, building savings …

II. pillar

If you join II. pillar, the part of your employer’s contributions to the Social Insurance Agency will go to your personal retirement account in your selected pension fund management company. In this case, you will receive an old-age pension from two sources – the first part of the Social Insurance Company (1st pillar) and the second part of your money, saved and evaluated on your personal pension account (Pillar II). The advantage of joining II. the pillar is that the money in your personal retirement account will be your private property and inherited.

III. pillar

An interesting choice thanks to the employer’s contribution, which increases the saver’s deposit. Most ideally, if an employee spends the same amount as the employer contributes to it. In this case it is a 100% appreciation that you will not find anywhere. Regardless of whether you decide to join the II. pillar or will continue to contribute solely to the Social Insurance Agency (Pillar I), you will be able to secure the pension in addition to the supplementary pension insurance companies (DDP), which represent the so-called “pension”. III. pillar of the pension system.

Other ways to appreciate money

By means of life insurance, one solves two areas – the present and the imminent risks and the future, that is, the retirement age. Of course, the composition of the individual risks and the amount of security depends on the profile of the person, his work, and whether, for example, he has a family budget or not. Similarly, it is with the saving part – a conservative client has the opportunity to use capital life insurance, where he has a fixed yield and target amount. A person with a higher risk acceptance can take advantage of the more risky type of investment and value the money within the funds. In the case of conservative clients, it is also possible to use building savings in the form of a friendly saver.

The average Slovak has about seven times less savings than the euro area average. Often his investment goes to low-yield funds such as cash or bank deposits. Slovaks are very cautious and afraid of more risky investments, which would make it much more expensive as it is a long investment horizon.

But the retirement age needs to be thought in advance and the savings are divided so that one has more than one income per old age. It’s never too late to start thinking about retirement. If you can’t give your own advice, contact experienced people who will explain everything to you as you need it.