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January 22, 2021

Romanians contributed by a record RON 150 M to voluntary pension funds in 2013

Last year, voluntary pension funds (Pillar III) reported an average return of 11.33 per cent, the best value reached in the last three years, and in December 2013, reported overall net assets amounted to RON 811 M (EUR 184 M), according to data provided by APAPR (the Romanian Pension Funds’ Association) and cited by a press release. Over the course of last year, assets administered by pension funds under Pillar III went up by over 35 per cent, primarily thanks to very good investment results, thus exceeding expectations in the industry.
“APAPR’s net assets estimate for January 2013 was RON 780 million, but current statistics put the net assets in contributors’ accounts at over RON 811 million. In 2013 alone, contributors to the voluntary pension funds transferred RON 150 M in contributions, 21 per cent more than in 2012 and a yearly maximum since the system became operational in mid-2007. Whereas the number of contributors grew below expectations in the industry last year, the record volume of contributions suggests the voluntary pension system is experiencing a gradual revival,” the press release notes.
As far as investment performance is concerned, private voluntary pension funds have recorded an average annualized return of 8.28 per cent from its launch in May 2007 until end-2013. At the end of last year, APAPR proposed a measures package to reinvigorate the voluntary pension system to the Financial Supervisory Authority and debates in this respect are to continue throughout this year.
“We see the record volume of contributions made by the clients as a vote of confidence in the private pension system and as a sign of gradual revival of a system, which in the last few years has evolved below expectations in the industry, where assets and contributors are concerned. The positive returns reported by funds, as well as the attractive fiscal deductibility of voluntary pensions, especially with regard to employers, create the basis for growth and development for the upcoming years,” Marius Popescu, chairman of APAPR, stated.

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