It's the number one question we hear from expats considering a move: "What happens to all the money I've been putting into the Czech pension system?" The answer is more nuanced than a simple yes or no, because there are actually three separate pools of money to consider — and the rules are different for each.
Pool 1: Mandatory Social Security (1st Pillar)
Every month you work in Czech Republic, your employer deducts social security contributions from your salary (6.5% from you, 21.5%+ from your employer). This money goes into the Czech public pension fund — it's not saved in an account with your name on it. It's redistributed to today's retirees.
EU/EEA Citizens
If you're an EU or EEA citizen, your years in Czechia are fully counted under EU pension coordination rules (Regulation EC 883/2004). When you retire — whether in your home country, Czechia, or another EU state — each country where you worked will pay you a proportional pension based on the years you contributed there. So 5 years working in Prague + 25 years in Germany = you receive a partial pension from both countries.
You don't need to do anything special to activate this — it happens automatically when you apply for a pension in any EU country. Just keep records of your Czech employment dates and social security number.
Non-EU Citizens
For non-EU citizens, it depends on whether your home country has a bilateral social security agreement with the Czech Republic. Countries with agreements include the USA, Canada, Australia, South Korea, Japan, Turkey, Ukraine, and several others. If an agreement exists, your Czech years generally count toward your home country pension (and vice versa). Without an agreement, your Czech social security contributions are effectively lost if you don't meet the minimum 35-year requirement for a Czech pension — which most expats won't.
Important: Even without an agreement, you don't "lose" your contributions in the sense that they're taken away. They simply don't transfer. If you ever return to Czechia and accumulate enough years, they'll count. But realistically, most non-EU expats on short-term stays won't benefit from the 1st pillar.
Pool 2: Supplementary Pension Savings (DPS)
Unlike social security, your DPS account is genuinely yours — it has your name on it and holds real money. Here's what happens when you leave:
Option A: Keep the Account Open (Recommended)
You can stop contributing and simply leave the account running. Your money stays invested and continues to grow. You don't need to live in Czechia. When you eventually reach age 60 and have held the account for 10+ years, you can withdraw everything — your contributions, employer contributions, state matching, and all investment growth — without returning any tax deductions.
Option B: Close the Account Early
If you need the money now, you can request an early termination (odbytné). You'll receive all of your own contributions plus investment returns. However, you must return the tax deductions you claimed over the years, and you forfeit the state matching contributions. Employer contributions are yours to keep.
The math often favors waiting. If you contributed 1,700 CZK/month for 5 years, you received ~20,400 CZK in state matching and ~36,000 CZK in tax savings. Closing early means losing the state matching and returning tax savings — roughly 56,000 CZK. If your account balance is 150,000+, keeping it open and waiting is usually the smarter move.
Pool 3: Long-Term Investment Product (DIP)
DIP works similarly to DPS when you leave, but simpler — there are no state matching contributions to worry about. Your options:
Keep it open: Your investments continue to grow. Withdraw after 10 years / age 60 without returning tax deductions.
Close early: You get everything back (contributions + growth) but must return the tax deductions you claimed. Since there's no state matching, the "penalty" for early withdrawal is smaller than with DPS.
What About Employer Contributions?
This is the best news: employer contributions are always yours. Whether deposited into your DPS or DIP, whether you leave Czechia next month or in 20 years, whether you close the account early or let it run — employer contributions and any growth on them belong to you. Period.
Decision Framework: What Should You Do?
If you've been here less than 3 years and have no DPS/DIP: Setting up a pension might not be worth the administrative hassle unless your employer offers generous contributions.
If you've been here 3+ years with DPS/DIP: Almost certainly keep the accounts open. The remaining years until the 10-year mark will pass, and you'll withdraw everything tax-free.
If you desperately need the cash: Close the accounts, accept the cost of returning tax deductions, and move on. The "penalty" is usually smaller than people fear — you're only returning the discount, not your money.
If you're an EU citizen: Your 1st pillar years are safe under coordination rules. Focus your decision on DPS/DIP only.
Use our pension calculator to model different scenarios, or our DIP vs DPS comparison tool to see projected values.
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Let's TalkAbout the author: Nicolas Griss is the co-founder of Profi Expats, a CNB-registered financial advisory firm helping expats in Czech Republic since 2017.