The value of fund units at the seven Pillar II pension funds increased by between 3.1% and 5.1% in the first three months of 2023, with the largest of them (NN) marking a 4% advance – well above the 2.3% consumer price inflation over the same three-month period.

Base effects drove the recovery after the slump in the bonds’ prices in the first three quarters of 2022. The advance was even faster during the last quarter of 2022: 5.1% to 6.0%.

The big picture, however, shows that the units of the Pillar II funds are not far from where they were before Russia invaded Ukraine: from -0.4% (the largest fund, NN) to +1.6%. This compares to 17.4% inflation.

Notably, even the wages increased faster than the Pillar II funds: by over 15% as of February 2023, compared to January 2022. 

iulian@romania-insider.com

(Photo source: Chernetskaya/Dreamstime.com)