Abstract
The retirement pension in the Czech Republic is to some extend dependent on the preretirement average income. Due to the fact that the average income is higher for segments of population with higher education, the retirement pension will also tend to be higher for individuals with higher education.
There is however also an additional aspect amplifying this difference which is rarely mentioned in this context. Namely the fact that the population segments with higher education have also higher expected lifetime and hence not only that they earn higher annuity amounts but also they on average earn the pension longer.
Both these aspects contribute to the difference in the present value of a retirement pension. The purpose of this article is to quantify this difference of the retirement pension by four education groups using the income statistics and unique life tables constructed for different educational groups.
The results show that differences are relatively large.