Public pension system is a huge apparatus of income redistribution. Some characteristics of the Croatian pension system which have an important influence on the amount of income redistribution are: (a) different pension calculation formulas for the “old” and the “new” pensioners, i.e. those who have retired before and after specific changes in the pension system; (b) the rules of “minimum” and “maximum” pension; (c) the formula which adjusts pensions according to the average wage and price index growth; (d) different contribution baselines for various groups of insured people (for example, employed versus self-employed).
The aim of this study was to recognize different sources and factors of income redistribution caused by the public pension system in Croatia, and to quantify their influence on different groups of beneficiaries. The results of this study identified “winners and losers” in the system and the analysis used simulations based on hypothetical data, household consumption survey data, life expectancy tables, etc.
The study is available in the repository of the Institute of Public Finance.