The compensation rate from the first pension pillar fell again last year. The share of the average old-age pension to the average gross wage in Slovakia fell below the 40 percent mark last year. The reason was that the average gross earnings last year increased more significantly than the average old-age pension. The average old-age pension went up by 2.6 percent year-on-year in 2022, but the average wage rose by 7.7 percent year-on-year last year. This follows from the statistics of the Social Insurance Agency.
While in 2013 the average old-age pension accounted for 47.4 percent of the average gross earnings, in 2019 the average old-age pension accounted for only 42.2 percent of the average wage in Slovakia. The so-called at the same time, the replacement rate in the first pension pillar continuously decreased between 2014 and 2019. The only exception was 2020, in which the compensation rate from the ongoing pension pillar rose to 43 percent. In 2021, however, it went down to 41.8 percent, and in 2022 it fell again, to 39.8 percent.
Don’t overlook
The interest in working in retirement varies significantly worldwide