Financial Supervisory Authority

12/16/2019 | Press release | Distributed by Public on 12/16/2019 02:40

Evolution of the market for private pensions in the first nine months of 2019

Bucharest, December 13th, 2019 - The value of total assets under administration, at the level of the entire private pension system, reached 61.53 billion lei (12.95 billion euros), as of September 30, 2019, up 24.04% from December 2018.

The share of private pensions in Gross Domestic Product was, at the end of September 2019, 6.22% compared to 5.22% in December 2018.

'The assets private pension funds reached almost 13 billion euros at the end of September 2019, a robust increase of 24% compared to December 2018. This evolution shows that the pension funds offer high returns, in the long term, under the conditions of a dispersion prudence to risk. We are convinced that this positive evolution will continue next year, year in which we hope to witness the emergence of the first occupational pension funds, Pillar IV, which will strengthen this system with the corporate component. We intend for 2020 to have a process of reviewing and improving the legislation, especially on issues related to the digitization of the private pension system and at the same time to focus on finalizing the architecture of the private pension system with the payment component of the private pension', declared the deputy chairman of the Financial Supervisory Authority, Mr. Dan Armeanu.

Private Administered Pensions (Pillar II)

The total value of net assets, registered as of September 30, 2019, of the privately administered pension funds was 59.10 billion lei (12.44 billion euros). The annual growth rate was 26.86%.

On September 30, 2019, 7.38 million participants were registered in the privately administered pension system, almost 1.75% more than at the end of 2018.

At Pillar II, the average contribution of the participants, with contributions transferred on September 30, 2019, was 179.25 lei.

Also, at the end of September 2019, the average value of an account in the privately administered pensions system was 8,129 lei (1,711 euros), 21.86% more than at the end of 2018.

In the first nine months of 2019, payments were made of the personal net assets to the participants amounting to 52.55 million lei for 5,526 participants and beneficiaries.

Optional pensions (Pillar III)

The total value of net assets, registered on September 30, 2019, of the optional pension funds was 2.41 billion lei (0.51 billion euros), registering an annual advance of 21.41% .

At the end of September 2019, 492,079 participants were registered in the optional pension system, 4.22% more than at the end of 2018.

At Pillar III, the average contribution of participants, with contributions paid on September 30, 2019, was 132, 93 lei.

The average value of an account of the participants in the optional pension system was, as of September 30, 2019, of 5,299 lei (1,115 euros), increasing by 16.02% compared to December 2018.

In the first nine months of 2019, payments were made of the personal net assets to 6,001 participants and beneficiaries totalling 43, 28 million lei.

A detailed analysis of the evolution of the private pensions market in Romania on September 30, 2019 can be found HERE ( in Romanian only).