In the midst of pension reform that is shaking our Beautiful, no one remained indifferent to the fact that their working lives would be extended to the age of 67. The question arises as to whether a person is physically fit to spend so long in the workplace, especially occupations that involve heavy physical exertion such as working on a construction site or in road construction.
Croatia has more than 1.2 million pensioners today, and over 300 thousand receive pensions of less than HRK 1,500 a month. With this amount, it is extremely difficult to survive, bearing in mind the average cost of living exceeding five thousand. Even citizens with an average salary are not able to handle the burden of the home budget, much less retirees.
Despite gloomy forecasts about the state of the pension fund, many retirees are delaying their retirement because of fears that they will not be able to survive. They don’t even think about some of the bigger luxury things, and most of the time, even the most basic things are a problem for them.
Banking and non-banking institutions have placed retirement loans
Numerous banking and non-banking institutions have been encouraged to design a range of credit measures aimed exclusively at pensioners. It has cumulated with living conditions and longer life spans. Retired people are living longer and have needs similar to those of their employees, and until now banking institutions have not noticed them because of the risk that is associated with them. Most often, they invest in the renovation of their homes, plan travel and buy home appliances that are not able to finance from a standard home budget, but have to borrow.
Many banking and non-banking institutions now offer retirement loans, which on average have lower interest rates, fixed interest rates and shorter repayment periods than those intended for employees.
What Does a Bank Check and What Does a Credit House Do?
Banks make sure to check the creditworthiness of a client with a pension loan. It is about determining the credit rating, ie the ability of a client to obtain retirement loans and repay them with interest on time. Credit companies take a different approach and only the so-called financial tidiness of potential clients is important to them. It is important for them that the client has regular incomes and regularly settles all their obligations.
Retirement loans for retirees with foreign pensions
Retirement loans for pensioners with foreign pensions are a relatively new phenomenon in our market. This is primarily because banks require users to register in Croatia, and many of them do not. This presents them with too much bureaucratic problems, so they often give up retirement loans right from the start.
Credit companies only ask their clients for an open checking account and regular income. The place of residence does not play a role in allowing retirement loans to be extended to those with foreign pensions. And this is an increase in the number of potential clients who left Croatia 40 years ago in search of a better life. The same ones that our people still look for in Ireland, Germany, Canada and Australia today.