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ASF: the share in GDP of the private pensions went up to 5.22% in 2018
The share of the private pensions in the GDP went up, at the end of last year to 5.22% as compared to 4.84% in December 2017 while the value of the total assets in the administration at the level of the whole system of private pensions reached 49.60 billion lei (10.64 billion euro) up by 19.40% against the previous year, according to a press release of the Authority for financial supervision (ASF).
On 31 December 2018 the highest share in the structure of the portfolio of the private pensions fund was owned by the state bonds with 63.62%, the other instruments recording the following shares: shares 17.56%, banking deposits 8.11% , corporate bonds 3.53% , non-governmental foreign body bonds 3.39%, participation bonds 3.01%, and other financial instruments 0.78%.
According to the document, the total value of the net assets, recorded at 31 December 2018 for pensions funds administered privately ( the second pillar) was 47.58 billion lei (10.20 billion euro). The annual rhythm of growth recorded was 19.72%.
At the end of last year, there were recorded in the system of pensions privately managed 7.25 million participants, with almost 3% more than in 2017.
At the level of pillar II, the average contribution of the participants with contributions given at 31 December 2018 was 159.75 lei. The nominal rate of yield of the pensions funds privately managed was on 31 December 2018 2.72% as compared to 3,95% on 31 December 2017.
Similarly, at the end of 2018, the average value of an account in the system of privately managed penions was 6.671 lei ( 1,430 euro) with 16.07% more than at the end of 2017.
At the end of December 2018, 5.71 million participants (80% of the total) owned in the account up to 10,000 lei and 1.43 million participants (20% of the total) owned in the account over 10,000 lei and out of those 300,000 participants (4.24% of the total) owned in the accounts over 25,000 lei.
In 2018 there were made payments of the net personal asset to participants worth 51.74 million lei for 6,837 participants and beneficiaries, out of whom 36.15 million lei as a result of the opening of right to pension, representing 68.88% of the total of payments made (3,463 participants), 14.91 million lei as a result of the death of the participant, 28.81% of the total (3,244 payments to beneficiaries) and 680,000 as a result of invalidity, 1,31% of the total (130 participants).
Similarly, the ASF data show that the net assets of the funds for pensions are worth at 31 December 2018 two billion lei ( 0.43 billion euro) with an annual advance of 12.18%.
At the end of last year there were recorded in the system of private pensions 472,160 participants, with 5,83% more than the previous year. On 31 December 2018, the average contribution/participant was 60.29 lei with 6,83% more as compared to December 2017.
On 31 December 2018 as compared to 31 December 2017 the nomial rate of yield of the private pensions funds which are part of the category of medium risk dropped from 3.19% to 1.60% and the nominal rate of yield of the private pensions funds which are part of the high risk category dropped from 4.87% to 2.58%.
The average rate of an account of the participants to the private pensions fund was on 31 December 2018 of 4.567 lei ( 979 euro) up by 6.42% as compared to the same period of 2017.
In 2018, there were made payments of the net personal asset to 7,851 participants and beneficiaries with a total of 58.15 million lei out of which 54,86 million lei as a result of the opening of the right to pension, representing 94.34% of the total of payments made (6,866 participants), 3.11 million lei as a result of the death of the participant, 5.36% of the total (951 payments to beneficiaries) and 0.17 millin lei as a result of the invalidity, 0.30% of the total (34 participants).