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Voluntary pension system (Pillar III) reaches almost 1 billion euro
The voluntary private pension system (Pillar III) attracted a record number of new clients in 2023 and is approaching 1 billion euro under management, reports the Association for Privately Administered Pensions in Romania (APAPR).
The total number of voluntary pension system participants reached 710,000 at the end of 2023, on whose behalf the 10 voluntary pension funds manage net assets of RON 4.74 billion (EUR 953 million), up 31% from 2022 and representing a historic high for the system.
In 2023, voluntary pensions recorded a weighted average return of 16.8%, about 10 percentage points above the inflation rate, consolidating their very good long-term performance.
Voluntary private pension funds have already made payments totalling around RON 635 million (EUR 128 million) to almost 80,000 beneficiaries over the period 2007-2023, of which RON 115 million (EUR 23 million) in 2023 alone. Pillar III participants can receive their accumulated money any time after they turn 60, and they can continue to contribute after that age.
Money saved under Pillar III can be received either as a lump sum or in equal monthly instalments over a maximum of 5 years. In the unfortunate event of the participant's death, the money accumulated in Pillar III goes to the legal or testamentary heirs.