Historic high for Croatian pensions

Payout is not at risk

Record-breaking HRK 40.1bn will be spent in Croatia this year to pay pensions, data provided by the ministry of finance and the pension insurance agency HZMO indicate and economists warn that this is the highest amount needed to pay pensions in the country so far, Jutarnji list reports. This year's amount is by HRK 1.2bn higher than last year's. Although the number of those paying into the system has been growing, so is the amount they are paying – this year by around HRK 500 relative to 2018, as a result of growing cost of the pension system. Although the payment of pensions is not at risk, analysts have been warning that the system is close to a breaking point because of negative demographic trends. That is why it is recommended to all members of the euro zone and to Croatia to change pension systems to keep people working longer.

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