Although modern pension systems trace their roots back to the end of the 19th century, ancient civilizations were already trying to solve the issue of state care for the elderly. Today, the pension funds of European countries consist of the pillars of intergenerational solidarity and capitalized savings. Intergenerational solidarity funds have a redistributive nature and serve as protection against poverty for the elderly. On the other hand, individualized capitalized savings funds are based on contributions and serve to achieve an appropriate percentage of income replacement from earnings. Most European countries are currently struggling with challenges affecting the sustainability of their pension systems, and demographic trends, with an emphasis on population aging, are the most pronounced. In order to respond to the challenges, states are trying to ensure longer-term financial sustainability through reforms - by increasing the pool of taxpayers, increasing the retirement age and increasing the rate of contributions to pension insurance. The historical circumstances of the countries in which the pension system exists greatly influence the state of the system in the present. Taking as an example the Republic of Croatia and the Swiss Confederation, one can analyze the movement of the number of funds in a country where the private sector was strong with the development of the pension system in a country where the state was a key factor in society, during the creation of the regulatory framework of the pension system. This paper will compare the characteristics of the pension systems of the Republic of Croatia and the Swiss Confederation, as well as compare the socio-demographic characteristics and financial situation as well as income based on pension insurance rights of the retired population of the two countries.