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January 29, 2022

Private pensions, an alternative to the state pensions that will be inexistent 20 years from now

The huge discrepancy between generations with regard to the number of employees will negatively influence the contributions to the public fund, the deputy general manager at the pension fund Eureko said on the Money Channel. “As a consequence, there will not be enough money to pay pensions 20 or 30 years from now. However, there is an alternative solution: private pensions,” he added. The difference between the public and the private pension systems consists in the benefits earned at the end of the contributing interval: 35 pc in the state system, compared to 100 pc in the private one, Craciun explained. In the private system, the next two decades represent an accumulation interval, he added. “The first payments of the private pension system will start only 15-20 years from now,” the Eureko official mentioned.

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