Episode · #227
CRNO NA BIJELO 3
Hosted by Marijana MatkovićMay 3, 2026
About this episode
What you'll hear in this conversation
The conversation opens with Igor Turčić, a small business owner who, despite being satisfied with his second pillar pension savings, expresses a deep skepticism about entrusting more money to financial institutions. He believes that "money loses value over time" and prefers to save his cash "in a mattress, a sock, a boot, anywhere." This contrarian view sets the stage for a broader discussion on voluntary pension savings, particularly the third pillar, a system designed to offer long-term financial security with government incentives.
Insights from the conversation
What to take from this episode
01
Igor Turčić, a small business owner, actively monitors his second pillar pension fund statements and notes his satisfaction with his accumulated amount, given his income over the years. Even with modest contributions, consistent, long-term saving in a structured system can yield substantial results, challenging the instinct to dismiss small, regular payments as insignificant.
02
Despite his satisfaction with his existing pension fund, Turčić states he wouldn't entrust additional savings to financial institutions, preferring to put money "in a mattress, a sock, a boot, anywhere." The default human instinct to hoard cash, while offering a sense of immediate security, often overlooks the compounding benefits and tax incentives offered by structured long-term savings vehicles.
03
Turčić expresses concern that "money loses value over time," casting doubt on the long-term efficacy of pension funds to maintain purchasing power. This common perception, while true for uninvested cash, misjudges the real returns achieved by pension funds that actively manage investments to outpace inflation, a nuance often lost on individual savers.
04
Tomislav Ridak of HANFA highlights that many people view pension contributions as a "quasi-tax" rather than a personal investment in their future. Reframing mandatory contributions as a personal savings obligation, rather than a tax burden, can shift perception and encourage a more proactive approach to planning for retirement.
05
Ridak explains that the third pillar allows individuals to save "without even knowing it" through small, regular, long-term contributions. The most effective savings plans are often those that integrate into daily life almost invisibly, requiring minimal conscious effort and leveraging the power of consistent habit over large, infrequent decisions.
06
The Croatian state offers a 15% incentive on third pillar contributions up to 5,000 HRK annually, adding 750 HRK to a saver's account. Government incentives are not just a bonus; they are a direct augmentation of your capital, making them a crucial factor to consider when evaluating the real return on long-term savings products.
07
Slaven Bošnjak from AZ Pension Society illustrates that saving 417 HRK monthly for 30 years at a 5% average annual return can accumulate nearly 400,000 HRK. The most dramatic financial outcomes come from the twin forces of time and compound interest; even seemingly small monthly contributions become significant capital when given decades to grow.
08
Bošnjak advises that those with a longer savings horizon (20-30+ years) should opt for "less conservative funds" because small differences in average returns compound significantly. Your investment strategy must align with your time horizon; early in your career, the risk of a slightly more volatile fund is often outweighed by the potential for much greater returns over decades.
09
Ridak suggests that the accumulated 200,000+ HRK from consistent third pillar saving could be used for pre-retirement needs like renovating a home or buying a new car. Long-term retirement savings aren't just for post-work income; they can also serve as a strategic capital pool to address major life expenses, freeing up other assets closer to retirement.