Experts: Croats, pension border to 72 years old
The new World Bank Analysis on the improvement of long -term adequacy and sustainability of the pension system has established several major challenges that are facing us.
There are a short period of work, a low average retirement age, a low worker and retirement ratio, numerous opportunities for early retirement, and choosing the choice between the first and second pillars at the time of retirement, reports Pension.hr.
The World Bank team in the preparation of analysis has cooperated with the Ministry of Labor and the Pension System, the Croatian Pension Insurance Institute (HZMO) and the central register of insured (Regos). The report was submitted to the Ministry for consideration in July 2024.
– The analysis concluded that there were no significant changes to the Croatian pension system. However, they include the abolition of another pension pillar or the re -introduction of the mandatory other pension pillar, that is, the abolition of the election of a pension. With appropriate adjustments and upgrades, a three -pillar system can continue to provide better social protection in old age than only the first or second pillar – the World Bank is a recommendation.
The implementation of a series of measures, such as an increase in retirement age and reduction of premature retirement periods, would increase the adequacy of pensions and sustainability of the system.
According to this analysis, the retirement age should reach for men and women by 2065.
– Increasing legal age for retirement improves the pension support ratio by ten percent. Later retirement leads to a slower inflow of new retirees and longer stay in the workforce. No other measure of pension policy has the power to achieve such an improvement of the support ratio, according to the World Bank in an analysis of long -term examples and sustainability of pensions in the Croatian pension system, with an emphasis on possible policies for its improvement from 2024.
The age limit would increase gradually to 66 and a half years by 2030, and after that for a month and a half, depending on the expected life duration.
