Pension reform in Slovakia

Since July of this year, pensions in Slovakia have increased by 10.6%. Accordingly, the average old-age pension has become 637 euros. From next year, payments will be raised whenever pension inflation reaches 5% since the last assessment, with the exception of the last quarter. Another change that will take place in 2024 is that the retirement age will depend on the average life expectancy, and therefore will increase by 1-2 months per year.

The old-age pension in the SR consists of compulsory, accumulative and voluntary insurance. Since May 2023, the approach to the accumulative part (second pillar) has changed. Entry into the second pillar has become automatic. As soon as you make a tax payment to the social insurance company, you immediately get into the second pillar. This innovation is designed to increase pension savings and provide an opportunity to have additional income in old age. The funds accumulated in the second pillar can be inherited.