The portfolio accumulated under the Pillar II private pension scheme would have been 36% higher today if the state had followed the initial calendar of contributions, according to calculations released by Radu Crăciun, president of the Romanian Privately Administered Pensions Association (APAPR) and general director of BCR Pensii, quoted by Ziarul Financiar.

Hypothetically, a Romanian with an average salary who contributed continuously to Pillar II between 2008 and 2023 would have an average portfolio of RON 36,000 today – compared to RON 49,000 under the scenario of the contribution increasing in line with the initial plans.

Currently, a Romanian contributes 3.75% of the monthly gross income to the Pillar II pension system – while the contribution should have reached 6% a long time ago. From January 1, 2024, the share should rise from 3.75% to 4.75%, which means additional contributions of RON 300 million every month.

iulian@romania-insider.com

(Photo source: Chernetskaya/Dreamstime.com)