Croatia's Pension System Faces Rising Costs as Early-Year Spending Hits 40% of Annual Budget

The Croatian Pension Insurance Institute (HZMO) has spent roughly 40% of its planned annual pension budget in just the first four months of the year, amounting to €2.46 billion. Total pension and related outlays for 2023 reached €7.2 billion, climbing to €8.2 billion in 2024 and projected to exceed €10 billion by 2027. The increase reflects higher regular pensions, statutory adjustments, one‑off pandemic and inflation payments, and a newly introduced annual pension supplement.

On 8 July, HZMO will begin the June 2026 pension disbursements for more than 1.23 million retirees. The cohort includes over 523 000 old‑age pensioners, 151 000 disability pensioners and about 205 000 family‑pension recipients. The average old‑age pension is €721.28, roughly 46.5% of the average net salary, while those with 40 + years of service receive about €879.17. Most pensioners are 73 years old with an average of 32 years of contributions.