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September 21, 2021

Aviva survey: Only 18 pc of Romanians are saving money for retirement

Only 18 pc of Romanians are saving money for retirement years, though almost two thirds of subjects are aware that the state pension won’t be enough to cover their financial needs, finds out a survey conducted by Aviva Group in 2009, quoted by Mediafax. According to the survey, 44 pc of Romanians do not understand the pension system, and neither do they know how much their pension will be, nor do they understand what alternatives they have. They also ignore the legislation, how they can contribute to the privately-managed pension funds (the 2nd Pillar), and the fiscal incentives granted to facultative pensions (the deductibility of the contribution and the 3rd Pillar). At the end of May, the number of contributors to facultative pension funds (3rd Pillar) was nearing 200,000.

According to Aviva Romania CEO Mihai Popescu, Romania is among the countries where the GDP percentage spent on pensions exceeds the average figure at the level of the Organisation for Economic Cooperation and Development (OECD). “This situation is common to the whole Central and Eastern Europe (Poland, Czech Republic, Hungary), where both the state, and private institutions that provide financial services related to savings for pensions must give solutions able to stimulate people to help themselves,” Popescu said. He added that each employee must behave responsibly during his professionally active years and choose the best long-term saving ways to bring him the financial support that will secure the living standard he wishes while on retirement. The head of Aviva Romania explained that financial security cannot be attained if one starts putting money away just a few years before retirement.

The Avira survey shows that Romanians react to crisis by renouncing everything that implies a risk and focusing on the investment products that provide guarantees through transparent investments into fixed-income minimum risk instruments. “We at Aviva, noticed a shift of savings towards the <> investment programme, which addresses precisely these actual needs of the client,” reads the press release.

British insurer Aviva is present in Romania since year 2000, through Aviva Asigurari de Viata (life insurances), Aviva Fond de Pensii (pension fund), which operates on the market of mandatory private pension funds (2nd Pillar), and Aviva Investors Romania (former Certinvest) – an asset management company acquired in September 2007.

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