Economic analysis of options for financing self-employed individuals in their post-productive age in the Czech Republic

Martin Holý

Master's thesis

Abstract:

This Thesis aims to test a range of options for the financial security of self-employed individuals in the Czech Republic, in their post-productive age. It includes an assessment of the strategy of the Ministry of Labour and Social Affairs introduced in February 2016 and the Thesis authors own proposals for dealing with the issue. The topic is considered from both the viewpoint of self-employed persons and from the viewpoint of the governments legislative power, which aims at increasing the share of the above mentioned group within the framework of the retirement account of the Czech Republic.The theories and approaches as outlined by the World Bank and the OECD, and the comparison of the Czech pension system with the pension systems of selected European countries, on the basis of application of The Melbourne Mercer Global Pension Index, within the framework of the theoretically-scientific context, made it possible to gain an insight into this issue in a broader perspective, because different approaches emphasise different sets of variables. The definition of the pension system in the Czech Republic based on the demographic forecasts and economic burden imposed on the productive population explains the necessity of future measures which would lead to the financial stabilization of the entire system. The Thesis analytical section critically evaluates alternative kinds of long-term investments and pension pillars of the Czech Republic and points out the overall profitability, riskiness and liquidity of individual types of possible financial security in old age. Presented results show potential benefits for a particular entrepreneur and refer to alternative parametric changes within the pension system. The following research section tests the applicability of identified proposals in practice.The research carried out by the author and described in this Thesis, has shown a higher profitability of alternative forms of investment in the context of improving financial security of self-employed individuals in their old age, compared to the state pension system. The outcomes refer primarily to the low variability of the state pension system and critically judge the official, governmental, partial strategies.

Keywords

Long-term investment, Pension system in the Czech Republic, Self-employed individual, Qualitative research, Securing for retirement age

Language used: English

Date on which the thesis was submitted / produced: 30. 3. 2017

Thesis defence

• Supervisor: Ing. Ladislav Pilař, MBA Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management