Second pillar private pension funds have generated gains of €10.1bn (RON 51.4bn) in the 17 years since they were introduced, data from the Association for Privately Administered Pensions in Romania (APAPR) has revealed.

The research showed that at the end of May 2025, the seven private pension funds under the second pillar umbrella managed RON 166.2bn on behalf of 8.3 million participants.

Since their establishment 17 years ago, pillar II funds have collected RON 118.6bn in gross contributions and made payments of around RON 3.8bn to approximately 238,000 beneficiaries (including heirs).

The research also showed that the profit, the difference after subtracting contributions from the total value managed, including payouts after fees, was RON 51.4bn.

The average return of all pillar II funds since its establishment is 7.8 per cent per year, well above the average inflation of 4.4 per cent per year over the same period.

APAPR president, Radu Crăciun, said pillar II pensions have “successfully” gone through numerous episodes of volatility that have temporarily affected the financial markets and implicitly the profitability indicators of pension funds.

“Each time, after these temporary declines, private pension funds have resumed their growth – the most recent example of rapid recovery being provided in 2025 after the episode of domestic political volatility,” Crăciun said.

There are 8.3 million Romanians enrolled in mandatory private pension funds and 4.5 million contribute regularly, giving 4.75 per cent of their gross salary as part of their social security taxes.

The average value of a personal pillar II pension account is now RON 20,000 and has doubled in the last 4.5 years.

Additionally, APAPR’s research found that someone earning an average salary who has contributed since the establishment of pillar II pensions until now has around RON 47,000 RON saved.

APAPR said that pillar II money is the second most valuable financial asset of the population, after bank deposits, representing a basic element for the long-term financial security and prosperity of Romanians.

In terms of investment, APAPR said 95 per cent of the money from pillar II pensions is invested in Romania, making private pension funds the most important domestic institutional investors.

Two-thirds of this figure is invested in government bonds and about a quarter is invested in Romanian companies listed on the stock exchange.

Pension funds therefore contribute to the long-term sustainable financing of the Romanian state as well as to economic growth and job creation – while maintaining a relatively low risk profile.

"Currently, all figures are at historic highs for pension funds, which strengthens Romanians' confidence in this savings system,” Crăciun said.

“There have been 17 years in which pillar II has confirmed that it is a successful reform, a system similar to those in the developed countries of the European Union and Organisation for Economic Co-operation and Development, with a strong economic and social role.”

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