Page 28 - Book of Abstracts 2021

Study 4 2020 Pension savings schemes with state contributions in the Czech Republic: a prop rather than a pillar August 2020 PENZIJNÍ SPOŘENÍ SE STÁTNÍ PODPOROU V ČESKÉ REPUBLICE: SPÍŠ PODPĚRA NEŽ PILÍŘ IDEA 2020  The share of employees who participate in the third pillar increases with higher earnings. The participation rate is more than 18 percentage points higher among the highest-earning twenty percent of employees than among the lowest-earning twenty percent.  The relative value of deposits against earnings declines with employees’ higher earnings, unlike the share of participating employees. The relative value of deposits is thus not highest among employees with the highest earnings, but actually lowest. That is true despite the fact that for the highest-earning employees, the share of their former earnings that an old age pension from the first pillar replaces is the lowest. 4 BACK TO CONTENTS 26