The primary purpose of this Master thesis was to provide the reader information about Pillar II. - pension insurance industry in the Republic of Croatia. Special emphasis was placed on the calculation of pension retirements from Pillar II. As the data of the Central Bureau of Statistics are pointing to the unpleasant truth that the demographic picture of Croatia points to the aging of nation, it is obvious that future retirees will find it harder to settle their basic living costs. Dependence coefficient, which takes in relation number of employees and the number of retirees, for a long time had a tendency to decline which at the end is reflected in a way of lowering of pensions. With that purpose Pillar II. was introduced in order to capitalize private savings in Pillar II. during their working life so they have some savings for their pensioners' days. After a well-deserved retirement, the insured would expect more peaceful days to come in the form of a “lifetime deserved holiday”. However, this vacation must be funded as well. Based on the analysis of the pension value from Pillar II. I would dare to argue that a “deserved vacation” for pensioners who receive or will receive pension from Pillar II. will not be so well. Normally the person who was earning a 10.000 kn gross salary during their life time can expect a Individual Lifetime Pension in a real range of 1.200 to 1.900 kn which does not represent some big money considering the real life costs that must be settled each month. Parameters that have an impact on the final amount of pension are the pension’s adjustment rate, the interest rate and the man/ladies ratio in the total population of insured people. The emphasis in this Master thesis was to illustrate how the change of each of them affect’s on the final amount of received pension. Overall if pension’s adjustment rate is rising final pension is lower, while the interest rate is rising the final pension is rising to. Population Census 2011 shows us how the proportion of ladies in the total population is increasing as the population goes into older years. Therefore, due to the longer life cycle of ladies, ladies/man ratio plays a significant role in pension calculation. Respectively, since pension insurers apply unisex mortality tables, a higher proportion of ladies in the insured portfolio results with reduction, while lower proportion of ladies in the insured portfolio results with increasing of final pension.