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Episode · #232

CRNO NA BIJELO 4

Hosted by Marijana MatkovićMay 3, 2026
About this episode
What you'll hear in this conversation

The conversation opens with a specific, hard number: one retiree's pension of 10,500 HRK, with a distinct 1,500 HRK coming from his second pillar contributions. This immediate detail cuts through the abstract notions of pension reform, grounding the discussion in a tangible personal outcome. Franjo Lešić, who recently retired after a career at Raiffeisen bank, shares his experience navigating the two-pillar system, revealing both its practicalities and its complexities. His story is then complemented by Biserka Žalac, a board member at Raiffeisen pension insurance company, who offers a broader view of how the system is evolving and who stands to benefit. Readers will gain a clearer understanding of the choices retirees face, the real-world impact of the second pillar, and the often-overlooked individual nuances of pension planning.

Insights from the conversation
What to take from this episode
01
Franjo Lešić's 10,500 HRK gross pension includes 1,500 HRK from the second pillar, representing 14-15% of his total income after 18 years of contributions. This concrete example shows that even with a relatively short contribution period, the second pillar can provide a significant, measurable boost to retirement income.
02
The process of claiming a pension involved a 3-4 month wait for HZMO and Regos to issue an initial decision, contrasting sharply with the 'few days' it took for Raiffeisen pension insurance to finalize the second pillar payment. Bureaucratic hurdles often lie at the entry points of a system, while specialized parts can be surprisingly efficient.
03
Franjo's wife, who worked in healthcare with a lower salary, found it more favorable to revert entirely to the first pillar, while he benefited from the combined option. The optimal pension strategy is not universal; it's highly individual, depending on career history, salary levels, and personal circumstances.
04
Franjo chose a single lifelong pension with a guaranteed period, which ensures his wife receives 100% of his second pillar pension for that period if he passes away first. Pension choices are not just about personal income; they are critical estate planning decisions that can secure a spouse's financial future.
05
Biserka Žalac states that 'one kuna from the second pillar yields a higher pension' than one from the first pillar when comparing equal contribution periods. Even with lower contribution rates, the compounding effect and investment returns in a funded system can generate disproportionately higher benefits per unit of contribution.
06
The second pillar's benefit is no longer reserved for 'director's pensions'; its break-even point has moved closer to the average salary, making it viable for those with slightly above-average earnings. Policy changes and market evolution can broaden the accessibility and benefit of financial instruments, making them relevant to a wider segment of the population.
07
Retirees can choose to receive a 15% lump sum payment at the start of their pension, even if it means a slightly smaller lifelong annuity. Financial decisions, especially in retirement, are often a trade-off between immediate needs and long-term security, requiring careful, personalized calculation.
08
HZMO provides two distinct informative calculations for second pillar members: one as if they stayed in the first pillar, and one for the combined option. A well-designed system offers clear comparative scenarios, empowering individuals to make informed decisions by seeing the direct financial implications of their choices.
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