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Financial Supervisory Authority

10/07/2019 | Press release | Distributed by Public on 10/07/2019 04:33

The evolution of the private pensions market in the first semester of 2019

Bucharest, October 7, 2019 - The value of total assets under administration, at the level of the entire private pension system, reached 57.43 billion lei (12.13 billion euros) in the first half of 2019, compared with 45.6 billion lei, in the same last year.

At the end of June 2019, the share of private pensions in the Gross Domestic Product was 5.80% compared to 5.22% in December 2018.

'The assets of private pension funds exceeded the level of 12 billion euros at the end of the first semester of this year and reached a weight of 5.8% in GDP. Private pension funds are important institutional investors in the economy, and the investments made through BSE, together with other institutional investors, have contributed to the promotion of the Bucharest Stock Exchange to the emerging market status by the FTSE Russell agency,' said ASF Vice-President, Mr. Dan Armeanu.

Private administered pensions (Pillar II)

The total value of the net assets, registered as of June 30, 2019, of the privately administered pension funds was 55.14 billion lei (11.64 billion euros). The annual growth rate was 26.15%.

On June 30, 2019, 7.34 million participants were registered in the privately administered pensions system, almost 1.26% more than at the end of 2018.

At the Pillar II level, the average contribution of the participants, with contributions paid on June 30, 2019, was 182.20 lei.

Also, at the end of June 2019, the average value of an account in the privately administered pensions system was 7,631 lei (1,612 euros), 14.39% more than at the end of 2018.

In the first semester of 2019, payments were made of the net personal assets to the participants amounting to 33.29 million lei for 3,522 participants and beneficiaries.

Optional pensions (Pillar III)

The total value of the net assets, registered on June 30, 2019, by the optional pension funds was 2.27 billion lei (0.48 billion euros), registering an annual advance of 20.34%.

At the end of June 2019, 486,310 participants were registered in the optional pension system, 3% more than at the end of 2018.

At the Pillar III level, the average contribution of the participants, with contributions paid on June 30, 2019, was 138.48 lei.

The average value of an account of the participants in the optional pension system was, on June 30, 2019, of 5,058 lei (1,068 euros), increasing by 10.74% compared to December 2018.

In the first half of 2019, net personal assets were paid to 4,033 participants and beneficiaries totalling 28.56 million lei.

The Report of the evolution of the private pensions market in the first semester of 2019 in available in Romanian only HERE