Dynamic funds within the Czech Republic’s new DPS pension scheme earned participants an average of 16.5 per cent in 2025, according to the Association of Pension Companies (APS) of the Czech Republic.

The result completes a three-year series of double-digit returns, APS stated, having achieved an average return of 12.55 per cent in 2024 and 20.64 per cent in 2023.

"Balanced DPS funds appreciated by 9.09 per cent, PKF returns reached 2.53 per cent, and all basic types of funds thus beat last year's inflation," APS spokesperson, Jan Sedláček, said.

Over the past decade, dynamic funds, which are primarily composed of equities, have appreciated at an average annual rate of 7.15 per cent.

The return on balanced funds, which are a mix of equities and bonds, reached 4.14 per cent annually, with all figures reported net returns after fees.

APS said pension funds performed well despite the slump at the beginning of 2025, when markets were negatively affected by the US customs policy in March and April.

By May, pension funds had managed to make up for their losses, and except for a slight decline before the end of the year, funds with an equity component continued to strengthen.

Furthermore, the association highlighted that the long-term performance of dynamic participant funds shows that Czech pension funds can offer investors a substantial supplementary income in retirement.

For example, a person who invests CZK 1,000 a month in dynamic funds from the age of 25 will have over CZK 3m in their account at the age of 65. This enables them to take an extra CZK 10,000 on top of their state pension every month for 25 years of retirement.

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