Private pension system assets reached 7.5% of the country’s gross domestic product in 2020, the regulator said.
The investment policy of private pension funds was mainly focused on the local capital market, with 22% of investments in equity and 74% in fixed income instruments.
On the mandatory private pension segment, or Pillar II, net assets managed stood at RON75.14 billion in 2020, approximately 21% higher compared with 2019. The system had 7.63 million contributors ta the end of last year, from 7.46 million at the end of 2019.
The average monthly contribution on Pillar II was RON191.63 in 2020 and total contributions paid throughout the year amounted to RON8.91 billion, 5% higher than in 2019.
The average value of a private pension account on Pillar II stood at RON9,863 in 2020, 18.32% higher than in 2019.
Pillar II funds paid RON178 million to 12,374 contributors and beneficiaries in 2020.
On the optional segment, or Pillar III, net assets managed stood at RON2.93 billion at the end of 2020, up 17% compared with 2019. The optional pension pillar had over 527,000 contributors at the end of the year.
The average monthly contribution on Pillar III was RON160 and total contributions amounted to RON370 million in 2020, 8% higher than in 2019.
The average value of a private pension account on Pillar III stood at RON5,549 in 2020, 11% higher than in 2019.
Pillar III funds paid RON77 million to 8,543 contributors and beneficiaries in 2020.