Challenges and opportunities for providing adequate old-age pensions in Croatia

Commissioned by: Adris Foundation
Project duration: October 1, 2010 – September 30, 2011   
Project manager: Danijel Nestić, PhD

Brief outline: 
The project aimed to identify the key challenges and opportunities for providing adequate old-age pensions in Croatia. It gave an unbiased i) analysis of the current pension system and its pension scheme, ii) identification of the main problems in the system and obstacles to the provision of adequate pensions to citizens and a long-term financial stability, and iii) systematic review of policy options, including their expected strengths and weaknesses. Problems were analyzed in long-term perspective, taking into account the long-term demographic trends and the underlying economic conditions. 

The project also tried to answer the following questions: What are the dominant trends in pensions and pension system development in the world and Europe? What will be the amount of pension payments in Croatia in the next 20-30 years if nothing changes in the pension system? Will an increase in budget expenditures be unsustainable if nothing changes? Will the pensioners who receive a pension from the first and second pillar be discriminated against those receiving a pension only form the first pillar? If yes, why? If yes, should the problem be solved and how can it be solved? What measures should be taken today to reach higher old-age pensions in the future? How to find an appropriate measure for lowering early retirement benefits? What are the strengths and weaknesses of increasing the legal retirement age? How to utilize the knowledge and skills of pensioners that would benefit them and the society? Do we need a model of gradual transition from employment to retirement?