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