Private pension funds generated yields of around 10 percent in 2012 in Romania, with mandatory private pensions performing better, with a 10.5 percent yield. The optional private pensions segment performed slightly less well, with a yield of 9.96 percent.

The net assets managed by the nine private pension funds active in Romania reached EUR 2.3 billion at the end of 2012, with over 240,000 extra contributors to the system. In total, 5.7 million Romanians contribute to the mandatory private pension system – Pillar II, while 290,000 people also have an optional private pension. The 11 private pension funds manage optional pensions worth some EUR 135 million.

The average yield on the mandatory private pensions segment has achieved a yield of 65 percent since 2008, when the new system was launched, which translates into a yearly yield of 11.45 percent.

“Looking at the numbers, 2012 was a difficult year, but a successful one for the private pension system. Despite all the turbulence, private pensions continued to grow and had good investment results, at low risk, which is essential for this system,” said Marius Popescu, president of the Association of Private Pensions Funds in Romania (APAPR).

This year, hopes are high for weight of the mandatory private pension funds to increase, after the contribution will be increased from 3.5 to 4 percent of gross revenues. “Looking ahead, stability and predictability in the system are our main wishes this year,” Popescu concluded.

editor@romania-insider.com

(photo source: sxc.hu)