Pension System in Croatia

Fast and Accurate

The pension reform in Croatia was as accurate as it was extremely fast paced.

The Three-pillar Pension System

Pillar 1 – Pay as you go (PAYGO) system financed by contributions and state budget revenues.

• Contributions equal 20% of gross salary
• Current retirees remain unaffected
• Individuals over 50 will remain in pillar 1

Pillar 2 – Compulsory pension insurance based on individual capitalized savings—

• pillar 1 contribution of 15% and remaining 5% into a private pension fund
• Mandatory for individuals under 40
• Individuals between 40-50 can choose between pillars 1-2

Pillar 3 – Voluntary pension insurance based on individual capitalized savings

• open to all citizens since March 2002