Pension concerns and financial literacy

Although the first pension reform in Croatia was introduced more than a decade ago, more precisely in 2002, even today the majority of payers of pension contributions do not know what they can expect in the future from their pension. Financial literacy of Croatian citizens, after the results of many investigations, is not at an acceptable level. There are a number of programs that attempt to correct the current situation, but it is a process that requires a lot of time. Meanwhile citizens take management decisions that will determine their financial future. Regulation on Amendments to the Law on Mandatory Pension Funds (Official Gazette, 93/15) adopted, at the session of the Croatian Government on 26 August 2015, before active military personnel, police officers and authorized officials under 40 years old, placed choice. Within 15 days they had to make a decision about remaining in the second pillar or getting out of it. In this paper, in a practical way, a projection of future retirement income for both selections will be displayed.