Romanians believe the level of a 'decent' monthly pension is RON 4,945 (almost €1,000), 75 per cent higher than the average real value of the public pension today, but do not yet save enough to reach this level, the Association for Privately Administered Pensions in Romania (APAPR) research has found.

Currently, less than half a million pensioners, 10.4 per cent of the total, benefit from a public pension above this level, National House of Public Pensions research found.

The APAPR said that this highlighted the “substantial” difference between the legitimate expectations of the active population and the possibilities of the state pension system, which is under financial and demographic pressures.

The research also revealed that 74 per cent of Romanians said they do not save for retirement outside Pillar 2.

The poll found that 97 per cent of respondents have heard of Pillar 2, compared to 90 per cent in 2022, while 79 per cent know that they are participants in this system, up from 66 per cent in 2022.

Almost two-thirds (61 per cent) said they have a lot of trust in Pillar 2 of private pensions, compared to 43 per cent in 2022.

Meanwhile, more than eight in 10 (82 per cent) said that Pillar 2 must continue to be supported, compared to 67 per cent who believed the same in 2022, indicating record levels of confidence for private pensions.

In addition to this, the poll also found customer satisfaction indicators regarding the administration of Pillar 2 have seen a “substantial” increase compared to the survey conducted in 2022.

Six in 10 (60 per cent) of Romanian respondents said they are satisfied and very satisfied with access to information on Pillar 2, an increase from 47 per cent in 2022.

Over half (55 per cent) are satisfied with the safety and guarantees of the system and 46 to 47 per cent are satisfied with the returns and administration costs.

In addition to this, the survey showed an improvement in the level of knowledge of the details of Pillar 2 by most respondents, with 78 per cent of Romanians understanding that the money in Pillar 2 is their personal property.

Meanwhile, 71 per cent know that the accumulated amounts are inherited in the event of death and 69 per cent know that the amounts accumulated in Pillar 2 are guaranteed and cannot be lost.

Two-thirds (66 per cent) understand that this money is continuously invested in the financial markets and contributes to the development of the Romanian economy.

APAPR president, Radu Crăciun, said: “The figures show a significant increase in all indicators of trust and satisfaction of Romanians towards Pillar 2 of private pensions.

“In addition to its obvious financial role, Pillar 2 also has a strong social role, of continuous financial education and stimulating the population's spirit of saving.

The data also showed a slight improvement in the population's savings, as 22 per cent of respondents said they have other savings specifically for retirement.

Regarding the state pension, the survey revealed that 58 per cent of Romanian respondents believe that the state will have difficulties with the payment of pensions for future generations, while 36 per cent are optimistic that there will be no problems.

The majority (81 per cent) of Romanians believe that the retirement age in the public system will continue to increase, and 77 per cent fear that they do not know what pension they will have, as its level depends on political decisions.

"The study shows us that the level of satisfaction and trust indicators in Pillar 2 of private pensions increases as the level of information of the participants is higher,” ISRA Center executive director, Alina Dincă, said.

“For example, 72 per cent of respondents with higher education are aware of the fact that the money collected through Pillar 2 of pensions is continuously invested and contributes to the development of the Romanian economy.”

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