Toni Milun warns of pension payout model risks in Croatia

Mathematician Toni Milun has highlighted how the choice of pension payout models can significantly impact monthly income for retirees in Croatia. Using a case study of a future retiree with low contributions, Milun demonstrated that a wrong decision could result in a loss of 47 euros per month.

In the example provided, a retiree considering a combined pension (Model B) would have received approximately 489 euros. However, by choosing Model A—which involves transferring all funds from the second pillar to the first to receive a single pension—the monthly amount would increase to 536 euros.

Milun noted that living on a pension of approximately 500 euros is extremely difficult without additional family support or significant lifetime investments. He advised citizens to carefully study all available options before retirement to avoid unfavorable payout structures.