Two-thirds (66 per cent) of working age Romanians are contributing to a pillar II private pension, as of 30 September 2022, up from 55 per cent in 2019, research commissioned by the Association of Privately Administered Pensions in Romania (APAPR) has found.

Meanwhile, nine in 10 (90 per cent) had heard of pillar II pensions, up from 85 per cent in 2019.

Three-quarters (75 per cent) knew that the money accumulated in pillar II represented their private property, up from 73 per cent in 2019.

However, the proportion of those surveyed who knew that pillar II money was guaranteed by law and could not be lost fell from 63 per cent in 2019 to 55 per cent in 2022.

Less than a quarter (23 per cent) knew how much money they had in their private pillar II pension, indicating an average amount of LEI 17,400.

By comparison, 17 per cent of savers knew how much they had in their pillar II pension in 2019, with the average amount being LEI 8,300.

The research, conducted by the IRSA Center, also found that savers in Romania believe they will need more than double the pension that the state pension provides to live a decent life in retirement.

Currently, the state pension provides LEI 1,736 a month, more than double the LEI 3,650 that respondents said they thought was a decent pension to live on in retirement.

Around 7 per cent of pensioners currently receive a monthly pension higher than LEI 3,650.

More than eight in 10 (83 per cent) working age Romanians said they were not saving any money on their own for retirement.

More than half (55 per cent) fear the state will not be able to provide them with a decent pension, while only 37 per cent trust that the state would have no problems paying their pensions.

Furthermore, 55 per cent said it was not clear to them what pension they will receive from the state, as the level of pension depends on political factors.

"It has been obvious for some time that there is a significant difference between the legitimate expectations of today's active population and the limited financial possibilities of the state pension system - and this is not only a problem in Romania, but in the whole world,” commented APAPR president, Radu Crăciun.

“Fortunately, Pillar II of private pensions works precisely to cover this lack of financial protection, without any additional effort to save, directly from the gross salary, and the money constantly accumulates in personal accounts, where it is invested, produces returns and supports development as well economy of Romania.”

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