OSIGURAJ SE Željko Bedenic

Guest Željko BedenicHosted by Marijana MatkovićMay 3, 2026

Željko Bedenic

About this episode

What you'll hear in this conversation

Croatia's pension system includes a unique entity: the pension insurance company. For years, Raiffeisen mirovinsko osiguravajuće društvo stood alone as the only institution licensed to pay out pensions from the second and third pillars. Its CEO, Željko Bedenic, offers a rare look inside this hybrid model, one that manages pensioners' funds while guaranteeing a minimum return and sharing any surplus. He explains how this structure differs from a traditional fund or an insurer, why the money remains the pensioner's property, and how recent changes in legislation are reshaping the landscape. You will leave this conversation understanding the critical distinctions in pension payouts and the subtle forces that shape financial security in retirement.

Insights from the conversation

What to take from this episode

Željko Bedenic describes pension insurance companies not as traditional insurers, but as a "hybrid of a fund and an insurance company." Unlike conventional insurance, the capital managed by these companies never becomes their property; it remains the direct ownership of the pensioners. This fundamental difference redefines the relationship between the institution and the individual's future security.

Raiffeisen Pension Insurance generated a 4-4.5% return on assets last year, while only guaranteeing 2.5% to pensioners. The difference was distributed as an annual "surplus" payout. The model isn't just about fixed returns; it's designed to share overperformance with pensioners, offering a tangible upside beyond the guaranteed minimum, distinct from traditional fixed annuities.

Not all of the "surplus" from good years is paid out; a portion goes into "intervention reserves." These reserves are built to cover potential shortfalls in years when market performance might not meet the guaranteed minimum, ensuring the promised payout remains stable regardless of fluctuating returns and protecting pensioners from market volatility.

While Raiffeisen had planned to hire additional staff this year, 80% of the smallest third-pillar pension amounts are now staying with funds, not transferring to the pension insurance company. Legislative changes allowing funds to pay out smaller pension amounts directly can significantly alter market dynamics, forcing even established, unique players to revise their growth projections and operational plans.

Bedenic contrasts fund payouts, where monthly amounts vary based on fund performance, with pension insurance payouts, which are "a real pension" with a guaranteed minimum that "cannot be less" than the agreed amount. The crucial distinction for pensioners is the risk profile: funds offer variability with potential for higher or lower payouts, while pension insurance offers stability and protection against market downturns, with any upside shared as a bonus.

"The vast majority of people don't know," Bedenic says, leading them to stay with funds "out of pure inertia" for their five-year payouts. Even when a different payout structure might offer greater security or potential benefits, a lack of public awareness and simple inertia often keeps individuals from exploring options that could better serve their long-term financial interests.

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