1. Older workers and unemployed under strain
The situation in the Croatian economy is characterized by a GDP per capita of around 5000 to 6000 USD, modest economic growth of 4% per year, a large number (over one million) of retired people and an unemployment rate around 20%. In this environment the most vulnerable groups would appear to be the unemployed and retirees with low pensions. The government as well as many independent institutions and economists are proposing different plans and ideas, which would help speed up economic growth and improve living standards in the country. One such idea is the project of gradual retirement.
Pensions economics is a complex field to work in, not least because of the many dimensions it covers beyond the already complex economic questions, particularly in the social and political sphere. The question as to how best (whatever this might mean in the discussion in question — and there has been a lot of confusion in the past over the target definitions) set up, finance and organize old-age security has been with us in its modern form for about a century, since Bismarck’s landmark introduction of the German social security schemes at the end of the 19th century.