APAPR: Romanians gained from pensions Pillar II over EUR 1.5 bln

Romanians made gains from pensions Pillar II, as the mandatory private pensions had gross contributions of RON 28.2 billion in the 9 years of activity and the difference of RON 35.1 billion represents the total gain from investments, so that Romanians gained over EUR 1.5 billion, according to a release of the Association for Privately Administered Pensions from Romania (APAPR).

According to the Association’s data, over 92 percent of the pillar II investments are made in Romania. The money from the private pensions of Romanians contributes to the economic growth and job creation in Romania.

Also, according to APAPR data based on public information, in the last 12 months for which there is available data ( June 2016-June 2017), the average commission within the Pillar II was 0.98 percent of the net asset. During this period, the average net yield of all the pensions funds from the pillar II was 7.38 percent.

„This efficiency level is due to the important investments made by the administrators in the system infrastructure and the insurance of the highest security standards for the economies of participants. In most of the cases, these investments were not still recovered, but the administrators understood since the beginning that the private pensions system are designed for the long term. The recovery delay of the initial investments was also due to the deviation from the initial growth of contribution,” says the release.

The Association also said that according to the most recent study of IOPOS (International Organization of Surveillance Authorities of private pensions systems), the Pillar II from Romania has one of the lowest commission rates at global level.