Slovakia faces pension funding squeeze as senior population set to rise by 540,000

An OECD Economic Survey warns that Slovakia’s population will age dramatically, with the share of people aged 65 and over projected to increase by 52 % between 2025 and 2065. The report estimates an addition of about 542 000 retirees, raising the total senior population to roughly 1.58 million. This demographic shift will shrink the working‑age cohort by almost 30 % and heighten pressure on public finances. Pension outlays already represent one of the largest budget items, amounting to €12‑13 billion annually, while the state pension fund ran a €2.94 billion deficit in 2025, requiring a €2.37 billion state transfer to maintain benefits.

Economists and pension experts highlight the urgency of reforms, noting that higher contributions will not automatically secure larger future pensions. Slovak tax specialist Jozef Mihál cautioned that lower contributions may be advisable, as the pay‑as‑you‑go system increasingly relies on solidarity rather than individual contributions.

In the Czech Republic, a separate discussion shows pensioners struggling with high living costs: a pension of 40 000 CZK in Prague is insufficient for basic needs, with housing expenses consuming up to two‑thirds of income. This underscores the broader regional challenge of ageing populations and inadequate pension incomes.