BUSINESS

EUR 560, average value of a private pension account

The average value of a private pension account in Romania was of EUR 562 (RON 2,500) at the end of March this year, according to data from the Financial Supervisory Authority (ASF), Mediafax informs. This was valid for the mandatory private pension funds – Pillar II. However, the value of a private pension account for Romanians who contribute monthly to the system was higher – some EUR 750 (or RON 3,350). The difference is due to the inactive participants in the system – some 180,000 Romanians have not contributed any monthly installment to the system. Moreover, out of the 6.1 million participants to the system, only around half had repetitive monthly contributions since 2008, when the system started.
Some Romanians managed to accumulate much more in their private pensions accounts – 159,000 of them had more than EUR 2,240 in these accounts, while almost half a million Romanians enjoyed a private pensions account between EUR 1,100 and EUR 2,200. As of January 2014, the state sent over to the mandatory private pension funds 4.5 percent of the monthly social contributions, up 0.5 percentage points on 2103. The assets of mandatory private pension funds were up 45 percent, to some EUR 3.5 billion, in Romania last year. These covered 2.36 percent of the country’s GDP.

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