Opposition in Parliament warns of low living standard for pensioners in Croatia

(Patria) - Opposition MPs used yesterday's debate on the law on voluntary pension funds to highlight low pensions and the living standard of pensioners in Croatia.

The average pension in Croatia barely covers utility bills, and milk, bread and butter have become a luxury for someone who worked for 40 years. Pensioners are struggling to live, they are barely surviving, MPs warn. They backed this up with statistical data.

- The median pension is around 513 euros, meaning 600,000 pensioners have less than that, 294,000 pensioners receive less than 308 euros per month, 271,000 around 395 euros per month - said Ivica Ledenko and Marin Miletić (Most).

- The average old-age pension in Croatia currently amounts to 435 euros, and every fourth pensioner receives around 300 euros - stated Sanja Radolović (SDP).

Majda Burić (HDZ) responded, pointing out that during the mandate of Prime Minister Andrej Plenković, all pensions grew on average by 74 percent (by an average of 263 euros) and that the average of all pensions in Croatia is 623 euros.

- The lowest pensions grew by almost 90 percent, and the average old-age pension for 40 or more years of service has a share in the average salary of almost 70 percent and amounts to an average of 913 euros - said Burić.

Regarding the legal amendments themselves, which bring about the liberalisation of the voluntary pension fund market, Boris Piližota (SDP) expressed concern about the potential weakening of domestic pension companies.

State Secretary in the Ministry of Labour, Pension System, Family and Social Policy Ivan Vidiš rejects this, emphasising that greater competition and a larger number of actors on the market mean higher returns and, in the long term, higher pensions for users.

- It will not mean a greater administrative burden for pension funds either - added Vidiš, responding to a question from Miletić (Most).

Mišo Krstičević (SDP) points out that the third pension pillar is intended for a small number of the wealthiest citizens who have surplus funds for voluntary pension savings.

- Perhaps it would be better to give the money for incentives for the third pillar to help the poorest pensioners instead of distributing it to the rich who have money for savings - he added.

- The legal amendments are mostly technical and there is nothing to object to them - concluded Damir Bakić (Možemo!) about the law.