Pension System in Slovakia

After the pension reform in 2005, the Slovak pension system is based on 3 pillars. The first and second pillars constitute the mandatory pension fund, the third pillar is voluntary.

We pay 18% of the assessment base (gross wage) to the social insurance company. If we are participants in the second pillar, 4% of these money goes to our retirement account in a pension management company and 14% remains in the social insurance company.

The third pillar is not compulsory, but for several people who have generous employers, it means a significant retirement benefit.

Social Insurance Agency

Social Insurance Agency

Money is the property of the state. These resources are used to pay pensions to current pensioners. Retirement age in the first pillar is determined by the state. The way in which pensions are calculated is decided by politicians. If we look at the retirement age and the average age, we receive the old-age pension for about 13 years.

Almost all money remains in favor of the state when it comes to retirement.

A running system will only work if someone has to work on our pensions. At the moment, however, workers are still waning and pensions are increasing.

The first pillar is only sustainable if the workers’ contributions to the social insurance system continue to grow.

Finances are valued in pension mutual funds

Finances are valued in pension mutual funds

Money is our property and is stored in our private DSS account. Our finances are valued in pension mutual funds. Current pension company legislation does not very motivate the appreciation of finance. Nevertheless, for some people it is better to have funds in their account than in social insurance.

Pillar 2 pensions are only possible after retirement in the first pillar. On retirement, we buy a lifetime rent at a commercial insurance company.

At death before retirement, funds are subject to inheritance and remain to our children and family.

The second pillar is not a panacea for the pension system. It is especially worthwhile for people who earn more than average income. But don’t expect the second pillar pension in Switzerland.

Supplementary Pension Savings

Supplementary Pension Savings

Supplementary Pension Savings (DDS) is voluntary. It consists of 2 parts. One is the employer’s contribution and the other is the saver’s contribution.

DDS will only pay if your employer contributes to you. You can read more about the 3rd pillar in the article “Supplementary pension saving – for whom?”

Wondering how to choose and effectively set a retirement savings to make the most of it? If you want to use the consultation, fill in the form below the article or call me directly.


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