In a notable shift, young individuals in the Czech Republic aged 34 and under are prioritizing saving for retirement over the traditional goal of purchasing their own homes, according to a study by J&T Bank. The study reveals that two-thirds of the young population in the country is proactively securing their future by investing early in retirement funds.

The primary motivation behind this trend is the desire to maintain a comfortable lifestyle in old age without significant compromises. Early retirement aspirations play a significant role in influencing this decision, with 12% of respondents expressing a desire to retire by the age of 50, 15% by 55, and 34% aiming to retire no later than 60. Less than a fifth of the respondents prefer working until the age of 70.

Roman Koděra, a banker with J&T Bank, highlighted the increasing trend of young people preparing for old age through early investments, benefiting from a long-term investment horizon where time plays in their favor.

The prevailing sentiment among these forward-thinking individuals is to invest an amount now that they would like to receive monthly in the future. Koděra emphasized the advantage of starting investments early, leveraging the concept of compound interest.

When it comes to utilizing their savings, 55% of respondents plan to withdraw a monthly pension to supplement their state pension, while the rest prefer to have a specific amount saved at their discretion.

Interestingly, homeownership is a motivator for investment and savings for just under a third of young people. The relatively lower figure in this regard could be attributed to the current high prices of homes, making it less affordable for them to buy an apartment or house.

Apart from retirement and homeownership, other motivators for saving include securing their children’s future, the opportunity to travel, and the aspiration to fulfill specific dreams. Many young investors start when they have monthly surpluses or have saved between 100,000 and 200,000 crowns, with the most commonly used methods being savings accounts and building savings.

Article by Prague Forum