One in Five Croatians at Risk of Poverty

In 2025, 20.7 percent of Croatian citizens faced the risk of poverty, a marginal decrease from the prior year, according to the latest data from the Croatian Bureau of Statistics on population income. This means one in five individuals had incomes below the poverty risk threshold, defined as 60 percent of the median equivalent disposable income. The report highlights that the unemployed, single parents, and the elderly are disproportionately affected. Specifically, over half of the unemployed, more than a third of single parents, and nearly a third of pensioners lived at risk of poverty last year. The decline in living standards is particularly stark after retirement, with the median annual income for those over 65 falling to 10,630 euros, compared to 15,000-17,000 euros for the working population. This translates to half of all pensioners receiving less than 886 euros per month.

The data also reveals significant income disparities among the elderly themselves, with a quintile income ratio of 5.27, higher than that of younger age groups. While only 6 percent of those at risk of poverty were employed and 7 percent had higher education, the analysis indicates that the pension system is the primary mechanism for mitigating income inequality in Croatia. If pensions were treated as social transfers rather than income, the Gini coefficient for income distribution would rise significantly, indicating greater inequality. The inclusion of pensions reduces this coefficient, and other social benefits further decrease it, though to a lesser extent. This underscores the critical role of the pension system in redistributing income and cushioning the effects of poverty for a substantial portion of the population.