ADEQUACY OF PENSIONS IN THE REPUBLIC OF CROATIA

Ana Pavkovic ()
Additional contact information
Ana Pavkovic: University of Zagreb, Faculty of Economics and Business

Economic Thought and Practice, 2022, vol. 31, issue 1, 327-346

Abstract: Today, pensioners make one of the most vulnerable cohorts in the Republic of Croatia, with remarkably low benefits in relation to the average of their own lifelong earnings, but also when compared to the rising cost of living. The aim of this paper is to determine the level of adequacy of pensions in the Republic of Croatia according to the three-dimensional approach to the adequacy, which includes the assessment of income maintenance, poverty and social exclusion, and retirement duration. By studying several adequacy indicators, this paper identifies weaknesses in the system and areas that require further analysis and reform. A comparison of EU member states places Croatia at the bottom of the list, according to most indicators of the level of pension benefits, while Croatian pensioners are also at a higher risk of poverty than pensioners in most other EU countries. This is why improving Croatian pension system through increased pension adequacy is at the core of the National Recovery and Resilience Plan for the period 2021-2026. The findings suggest that pension adequacy should be a higher priority of long-term reforms of the Croatian pension system than sustainability, and pension reforms should be accompanied by reforms in the labor market and the financial system.

Keywords: pension adequacy; pension system; old-age income poverty (search for similar items in EconPapers)
JEL-codes: H55 J14 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/index.php/clanak/403511 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:avo:emipdu:v:31:y:2022:i:1:p:327-346

Ordering information: This journal article can be ordered from
Economic Thought and Practice, University of Dubrovnik, Branitelja Dubrovnika 29, 20000 Dubrovnik
https://emip.unidu.hr/

DOI: 10.17818/EMIP/2022/1.15

Access Statistics for this article

Economic Thought and Practice is currently edited by Nebojsa Stojcic

More articles in Economic Thought and Practice from Department of Economics and Business, University of Dubrovnik Contact information at EDIRC.
Bibliographic data for series maintained by Nebojsa Stojcic ().