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Application for early retirement without pay

You’re over 60 and five more years on the job sounds impossible? Are you unable to cope due to poor health or just want your well-deserved rest? One option is to apply for early retirement. In this article, we look at when you’re eligible to retire and how early retirement works and how it’s paid.

6 minutes of reading

Chapters of the article

Conditions for retirement

The conditions for retirement are determined by years of service before retirement and reaching a specified age, which varies according to the year of birth.

Years of pensionable service

By years of pensionable service we mean the minimum period of payment of social insurance. During your studies, the state pays social security for you (but only the time between 18 and 24 counts towards your pension), after which your employer pays it for you or you pay it yourself as a business.

Tip: Social security is a levy that almost all working people have to pay. However, many people do not know why they pay social security and how much is actually deducted from their wages or salary. In our next article, we’ll give you the answers to who has to pay social security, where and how much.

The minimum period of payment of social insurance also includes the so-called substitute period of insurance, e.g. the aforementioned studies, parental leave, etc. The minimum period increases with time. Its length therefore depends on when you reach retirement age. It is determined as follows:

Reaching retirement age Minimum period of payment of social insurance
before 2010 25 years
in 2010 26 years
in 2011 27 years
in 2012 28 years
in 2013 29 years
in 2014 30 years
in 2015 31 years
in 2016 32 years
in 2017 33 years
in 2018 34 years
after 2018 35 years
— minimum payment periods for social insurance

Year of birth and pension

Born before 1936

In the case of a man born before 1936, the retirement age was set at 60. In the case of a woman born before 1936, it still depended on how many children she had raised:

  • 53 if she had raised at least 5 children
  • 54 if she had raised at least 3 or 4 children
  • 55 if she had raised at least 2 children
  • 56 if she had raised at least 1 child
  • 57 years if she had raised no children

Do you have a question?

Wondering when you can retire or have a legal question about pension legislation? Don’t hesitate to ask us! We are ready to answer any legal question. Our team includes specialists in all areas of law, so we can guarantee a really high quality of legal advice. What’s more, we can give it to you online and within two working days.

Born between 1936 and 1971

In this case, your retirement age is based on your year and month of birth. Again, the retirement age differs between men and women and on the basis of children brought up. To find out exactly how the retirement age is determined, see the table on the Czech Social Security Administration website.

Births after 1971

If you were born after 1971, your retirement age is set at 65. It does not matter whether you are male or female or how many children you have raised. The maximum retirement age is therefore 65. This does not mean that it will not increase in the future.

Tip: Is it worth continuing to work after you have retired? And what’s the deal with retiree employment? Does the method of employment or the employment contract change the moment you retire? And what about early retirement? Find out in our article on retirement and employment of seniors.

How early retirement pension works and how it is paid

Early retirement is when a person retires before the standard retirement age. This depends on everyone’s date of birth, but is currently set at a maximum of 65 (see above). Early retirement is only available to those who meet the conditions set out in the Pensions Act. These conditions include:

  1. Reaching a certain age: Early retirement is possible no earlier than three years before the standard retirement age. So if you are due to retire at 65, the earliest you can retire early is 62.
  2. Payment of social insurance: The second condition is that you must meet a minimum period of social insurance. In the case of early retirement, this is set at 35 years, or 30 years without a replacement period of insurance (e.g. in the case of parental leave or studying between 18 and 24 years).

From October this year, the rules on the minimum period of payment of social insurance for early retirement will be tightened. This will now be set at 40 years.

However, in the case of early retirement, a substantial reduction in the pension paid must be taken into account. This reduction applies throughout your retirement, not just for the duration of your early retirement. You should therefore think carefully about this step.

How much your pension will be reduced depends on when you take early retirement. Specifically, the pension is reduced as follows:

Early retirement: The pension is reduced by a percentage of: You will lose the following amount per month:
90 days 1,5 % 144 crowns
by 180 days 3 % 288 crowns
by 360 days 6 % 576 crowns
by 720 days 12 % 1 344 crowns
by 1 080 days 24 % 2 304 crowns
— pension reduction

Early retirement without pay and conditions

If you would like to avoid a pension cut but still want to retire early, there is a solution in the form of an early pension without payout. In this case, you apply for an early pension but not for a payout. You will therefore become a pensioner, but you can continue to work without restrictions. The conditions for calculating the pension will also be fixed and the amount of the pension will then be determined when it is paid out.

Tip: Want to decide who inherits from you? To be sure that your will is actually respected? We will draw up a will for you exactly according to your requirements and at the same time according to the applicable regulations so that it is irrevocable. All this within five working days and at a predetermined price.

The conditions are the same as for an early retirement pension with payout – attainment of a certain age and a minimum period of social insurance payments. The advantage is that the period of early retirement without payout counts towards your total period of social security payments. This is because the total period of social insurance is only added when you request the release of your pension payment.

How to apply for an early pension (without pay)

You must apply for an early pension in person at the district social security office of your place of residence. Only in exceptional cases can you apply by letter, which you can send by post or electronically. However, even in this case you will have to apply in person within six months. A paper application is only used to preserve the date of entitlement to the pension.

You will need proof of identity, i.e. an identity card or passport. You will also need to provide documents confirming your period of insurance that are not in the CSSA’s records (e.g. proof of children being brought up, proof of studies, proof of compensatory periods, etc.) If you want to have your pension payment sent to your or your spouse’s account, you will also need a certificate from your bank.

Tip: Changing your pension payout is not a problem in the future. How to do it will help you with a guide from the Czech Social Security Agency.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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