The demographic process of accelerated aging of the population and the increasing number of retirees compared to the working population have led to the need for increased individual responsibility of each individual for their own finances and private savings for retirement. In order to achieve an adequate standard of living in old age, individuals already at a young age must gather enough necessary information and knowledge, that is, constantly invest in their own financial and pension planning and education. A low or insufficient level of financial and pension education and literacy leads to bad financial decisions that can have extremely negative consequences on an individual’s life. Therefore, pension literacy, raising confidence and a positive attitude towards a certain type of savings represent an important path leading to an increase in private savings for retirement. This paper analyzes the level of pension literacy in the Republic of Croatia and the attitude towards saving for the third age using the example of generation Y. Generation Y, also called millennials, are people born in the period between the 1980s and 2000s. Given that they are the last generation of children who grew up in the era before the advent of technology and the Internet, they have made great use of these resources for their personal development and are bringing numerous changes and a new business culture into today’s world. The results of the analysis show that generation Y is sufficiently familiar with long-term savings and self-care to increase the standard of living in the third age, however some of the respondents have not yet decided on one of the forms of savings, moreover they have not even been informed about it. In addition to awareness of long-term savings, there is certainly a need for additional education in basic information about the pension system of the Republic of Croatia.