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Damir Grbavac
Episode · #31

OSIGURAJ SE Damir Grbavac

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

The conversation begins with a polite but firm disagreement. The host, Marijana Matković, pushes back on the idea that Croatia's second pension pillar is a sufficient answer for all retirees. Damir Grbavac, who leads Raiffeisen's mandatory and voluntary pension funds, directly addresses this tension. He presents early data suggesting the system is already working for a significant portion of new retirees, with over half choosing combined pensions from the first and second pillars. This isn't a simple defense of a financial product. Grbavac unpacks the complex interplay between state-mandated savings and individual responsibility, arguing that the second pillar is a necessary step towards a more sustainable and adequate retirement system overall. He then details how the often-overlooked third pillar—voluntary savings—offers concrete advantages, not just for individuals seeking to maintain their living standard, but for employers looking to retain talent. Readers will leave this conversation with a more nuanced view of how the Croatian pension system functions, and how strategic choices today, both personal and corporate, directly shape financial security in retirement.

Insights from the conversation
What to take from this episode
01
Grbavac notes that "over fifty percent" of new retirees are now choosing a combined pension from the first and second pillars because it's "more favorable" for them. A new system's success often isn't about universal benefit, but about enabling a better choice for a significant majority. The option itself creates value.
02
While combined pensions are better for "the vast majority," Grbavac clarifies they are not for "everyone," specifically those with "lower wages" or who paid "minimal contributions." For them, the first pillar alone is better. No single pension model serves all demographics equally. Understanding the specific contribution history and income level is crucial to determining which pillar benefits an individual most.
03
Grbavac outlines a future where the second pillar takes a "main role" and the first potentially shrinks to "a minimum pension for social needs," though he adds, "I'm not entirely on that line." The long-term direction of national pension systems often involves a tension between social safety nets and individual market-based savings, with even experts holding differing views on the ideal balance.
04
The third pillar provides a "state incentive of fifteen percent" on contributions up to 5,000 kuna annually, capping at 750 kuna. Even a modest, consistent state subsidy can significantly shift individual behavior towards long-term voluntary savings, making a financial product demonstrably more attractive.
05
Employers can contribute up to 6,000 kuna annually to an employee's third-pillar fund "without tax and contributions," making it a "net payment." Tax-efficient employer contributions to voluntary pension funds are not just a perk; they are a strategic tool for talent retention, signaling to employees that a company values their long-term financial security.
06
Despite "years" of discussion about increasing the second pillar contribution rate, Grbavac observes "nothing is happening" on that front. Even when a systemic change is widely acknowledged as necessary for long-term stability, political will and implementation can lag far behind expert consensus.
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