Pension system in the Republic of Croatia is a part of social security implemented through the Croatian Pension Insurance Institute. The final form of the pension system has been formed, which is based on generational solidarity and individual capitalized savings, and consists of three pillars. The first pillar of retirement insurance is obligatory and based on generational solidarity, and the remaining two pillars are based on individual capitalized savings, but differncebetween them is that the second pillar is obligatory and the third one is voluntary. There are three categories of obligatory pension funds A, B and C, which differ according to the ratio of expected return and risk and according to costs. Pension insurance companies pay pensions to retirees on the basis of individual capitalized savings of members of mandatory pension funds. Given the connection between the demographic structure of the population and the pension system and the unfavorable demographic structure in Croatia, the pension system is partly financed from the State Budget. The big problem is the aging of the population and the departure of young people to other countries. A potential solution to this problem lies in the implementation of pronatality policy, ie the increase of newborns, as well as the implementation of measures that would reduce the emigration of high-quality work force from Croatia.