November the 14th, 2022 - A new Croatian pension model is on the horizon, which will likely make the payouts retirees receive each month higher in the long run.
As Poslovni Dnevnik writes, a new Croatian pension model will come into force on January the 1st next year, as will Croatian entry into Schengen and the Eurozone. The news is that what are known as family pensions are set to increase by 10 percent, and for the first time, widows and widowers will be able to keep their personal pension and inherit part of their deceased spouse's pension, which wasn't even possible until now.
The new Croatian pension model will cover more than 155,000 pensioners, and the average increase will be around 510 kuna, which while small in the eyes of some, isn't entirely insignificant to those receiving a criminally low amount each month. In order to be entitled to this type of pension, you must be 65 years old. In addition, at the time of your partner's death, you should be able to meet all of the other conditions for exercising the right to a family pension, according to a report from HRT.
"For example, if someone was 50 years old at the time of their spouse's death or they were taking care of their children, that means they were fulfilling their parental duties. And, on top of that - that the sum of their personal pension and part of their family pension doesn't exceed 80 of the current value of the pension, which currently stands at 6,212 kuna," said Melita Cicak, the director of the Pension System Administration in the Ministry of Labour.
What is the actual procedure?
Considering the differences, each user will be able to get information from the Pension Insurance Institute (HZMO) about which Croatian pension model is the most profitable for them.
"Users who use only their family pension, and haven't been granted the right to a personal pension, will need to submit a request for the realisation of the right to a personal pension or family pension before requesting the payment of part of the family pension," said Maja Cakarun, head of the Public Relations Office of the HZMO.
The new law enters into force on January the 1st, 2023, and its implementation will require around one billion and 400 million kuna.
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