From birth till the end of the life, a lot of important milestones are put in front of a person - from starting school, going to college, getting a job, and all the way to retirement. Every new period in a person's life, including retirement, requires adjustments and changes in the rhythm of life and reorganization. Every person wants to see a dignified old age and a carefree life after the end of working life. This is why, before one decides to retire, it is very important to understand how the pension system works in order to make the transition from one stage to another as easy as possible. The system operates in such a way that during their working life, system members and their employers pay contributions from wages and salaries. Retired members are entitled to a pension, partly based on their contributions. The insurance also provides benefits for the disabled and for family members of disabled and retired workers. Pension systems today are a combination of different models with regard to the way of financing, distribution, organization and management, and thus instead of one system with several pension pillars. The pension system is an important part of the social security system in Croatia, and consists of two mandatory and one voluntary level of pension insurance. For the past several decades, the Croatian pension system has been continuously facing the great challenge of exposure to demographic changes.