People over 65 will represent 65% of Romania’s population in 2060, and an employee will support 2.5 retirees in 2050, said Ion Giurescu, vice president of the Financial Supervisory Authority (ASF) in charge of private pensions quoting a study by EU’s statistical office Eurostat.

He added that Romania needs additional pension systems so that retirees can have a “quiet old age," reports local News.ro.

Giurescu spoke at a conference about private pensions organized by press agency News.ro and local insurer NN Romania.

Romania’s pension system currently has three pillars: the first pillar - the public pension budget, the second pillar represented by the mandatory private pension, and the third pillar - the optional private pension system. The ASF representative said that Romania could introduce a new pillar to the pension system, namely the occupational pension system, which would involve paying an additional contribution, but would guarantee higher pensions at old age.

The Government led by former prime minister Victor Ponta also introduced the special pension system last year for several categories, especially for militaries. Magistrates, secret service workers, and even elected public officials also get special pensions.

The special pensions are determined by law and don’t depend on the people’s contributions to the pension system, so there are no limits for their value. Economists consider them a burden for the budget.

editor@romania-insider.com