The analysis of sustaining pension system was done to show the real state of it, from the beginning stages of introducing a social state until today. Within this system, more than a million retirees and the members of their families establish social security considering the risks that come with old age, disabilities or deaths of the provider in the family. This paper defines the essential characteristics of the system, introduction of the retirement pillars (the first, second and third retirement pillars), and finally the listed changes with age. Based on the evaluation of the movements in the demographic structure, economy and the laws, the possible prospect of the retirement fund is predicted. The demographic movements show/indicate the influence of the economic crisis (caused by the war, the transition, and the poorly shaped pension system) and related problems which caused the imbalance of the pension system. The analysis indicated the share of employed citizens in the Republic of Croatia, the share of active insured and retired people and the deficit, i.e. the lack of income compared to the expense, which affects the state of the state budget. As the height of pension compared to common pay (income) and savings on the side of expenses decreases, so will the deficit. The analysis of the data defines the guidelines for improvement of existing strategies of reform of the pension funds in Croatia. There is a series of action to achieve a balanced pension system in which, besides the pension security and the state, the citizens also matter. The introduction of a new and stricter pension system and greater responsibilities of the citizens themselves could eventually lead to a better economic image of the Croatian pension system.