The pension fund system gives the possibitity to the citiziens to citizens who pay contributions from their salaries during their work to exercise the right to receive the pension necessary for life at the time of retirement. The Croatian pension system is based on three pillars, the first and second is mandatory while the third is voluntary pension savings. The advantages of capitalized savings, except insurance in old age, contributes to and encourages the development of the capital market by accumulating national savings, but also economic development and increaseases living standards. Being a member of a pension fund enables an additional personal pension for which we have incentive funds from the state budget. There are fewer and fewer employees in Croatia while the number of pensioners is increasing, which is the reason for the capitalized pension system in which personal assets in mandatory pension funds are the basis for the payment of pensions of future pensioners.