1060
Views
196
Downloads |
Potential investments of pension funds in long-term care for the elderly: the case of Croatia
Ljubica Mežnarić* 
Ana Mežnarić*
Ana Mežnarić
Affiliation: Student at the Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
 0009-0005-3065-793X
Article | Year: 2024 | Pages: 57 - 77 | Volume: 48 | Issue: 1 Received: June 1, 2023 | Accepted: January 10, 2024 | Published online: March 1, 2024
|
FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
Source: Authors (CBS, 2023).
|
|
1971
|
1981
|
1991
|
2001
|
2011
|
2021
|
|
Women
|
35.5
|
37.1
|
38.7
|
41.0
|
43.5
|
45.9
|
|
Men
|
32.4
|
33.8
|
35.4
|
37.5
|
40.0
|
42.5
|
|
Total
|
34.0
|
35.4
|
37.1
|
39.3
|
41.8
|
44.3
|
Source: Created by the authors (CBS, 2022).
|
Type
|
Number
|
Total accommodation capacity
|
|
State
|
3
|
171
|
|
Decentralized
|
45
|
10,869
|
|
Private
|
121
|
8,421
|
|
In total
|
169
|
19,461
|
|
1. What do you think are the
potentials/problems of the business model of existing homes for the elderly
(systems for the elderly)? a. Who or what influences these potentials
or problems?
|
|
2. Can you list the challenges in building
long-term care facilities for the elderly in private ownership?
a. Do these challenges change over time? b. Do they become more or less intense in response
to the environment in which they are located?
|
|
3. Do you think there are prospects in the
construction of homes for the elderly and what are their market potentials,
looking
a. from the perspective of private homes for the elderly as an export product/
b. from the perspective of investment in infrastructure c. from the perspective of potential
arrivals of large international companies dealing with homes for the elderly?
|
|
4. What are the advantages/disadvantages for,
and is there a willingness on the part of, pension funds to invest in homes
for the elderly?
a. Why don’t they invest right now? b. What are the preconditions for them to invest more significantly (the
development phase of the market for homes for the elderly)? c. Do you think there should be a regulatory
change in pension fund investments? d. What are the risks and gains from the perspective of pension investments?
|
|
5. Are you planning or considering investing
in homes/are you planning to invest in a home from a finance institution side?
a. Do you have any indication of significant new investments in homes for
the elderly?
|
|
Key
categories
|
Topics
|
Quotation
|
|
The
current business model problem of existing homes
|
Capacity
|
„The problems are insufficient space, or lack of capacity.“
|
|
Waiting
list
|
„
We currently have 270 people on the wating list and many people who applied
while they were still mobile…”
|
|
Personnel–
shortages and the disconnection of different professions
|
„And
this fragmentation and lack of coordination worsens the shortage and lack of
human resources in the institution.“
|
|
Challenges
in the construction of privately owned homes
|
Strict legal
regulations and non-transparent criteria for obtaining accommodation in a
state/county home
|
„It is a long-term battle and struggle because you have to meet all
technical standards, conditions, so there are special regulations for the
construction of such facilities. “
|
|
Real
estate market and problems in construction
|
„The construction industry is affected by the lack of labor, as well asd
by rising costs. “
|
|
Cooperation
in the form of PPP
|
„So,
if one user has thousands of kuna, and our private home is the only home in
the area to accommodate this type of user, the public sector should
compensate him for the difference. “
|
|
Perspective
in building homes
|
Demographic
need
|
„It
is simply a need that will develop more and more, we have more and more old population
and we are increasingly becoming an older nation. “
|
|
Export
product
|
„If
we look at Croatia as some kind of tourist destination, a country that bases
its economy on the industry, then it could be our export product."
|
|
Investment
of pension funds in homes
|
Current
investments
|
“Given that there is currently no company that is listed on the regulated
market, whose primary branch of activity is the management of homes in the
territory of the Republic of Croatia, we are not able to invest in it.“
|
|
Prerequisites
|
„When investing, ensure that such investment is in accordance with the
nature and size of the pension fund’s obligations. Take into account the
specific risk and return characteristics of such investment on the overall
risk profile of pension funds and impact of that investment on the liquidity
of the pension fund.”
|
|
Legislation
|
„Although in principle we welcome changes in the regulations that result
in an easier flow of capital between investors and recipients of funds, we
believe that the current regulations do not prevent investments by pension
funds…”
|
|
Risk, profitability and readiness
|
„We
are ready to enter the project if sit is concluded that it meets all the
criteria. In this particular case, we believe that a relatively higher risk
in the mentioned type of investment would also imply a relatively higher
level of yield.“
|
Chart 1Age-sex pyramid according to the 2021 census DISPLAY Chart
Table 1Average age of population in Croatia, 1971-2021 DISPLAY Table
Chart 2Aging index 1971-2021 (in %) DISPLAY Chart
Table 2Type, number, and total accommodation capacity of homes in 2022 DISPLAY Table
Table 3Questions to respondents DISPLAY Table
Table 4Research results DISPLAY Table
* The authors would like to thank two anonymous reviewers for their valuable help in completing this article.
|
|
March, 2024
I/2024
|
