||The Czech Republic is one of the fastest aging societies in the world. A fast and dramatic fall in the fertility to a low 1.17 children per woman is compounded by the fast rise of the average lifetime. These dramatic changes will have a profound impact on the entire society, but nowhere will they be more keenly felt than in the pension system. The Czech pension system is a typical, mature pay-as-you-go (PAYG) system whereby current pension benefits are financed from current contributions levied on the working population. It is also a highly redistributive pension system, where benefits only loosely depend on contributions.