Pillar II private pension accounts reached average value of EUR 1,600 in June 2019

The value of the total assets under administration at the level of the entire private pension system reached RON 57.43 billion (EUR 12.13 billion) in the first half of 2019, increasing by almost 26 percent compared to the same period last year, when it exceeded RON 45.6 billion, according to data from the Financial Supervisory Authority (ASF), cited by Agerpres.

At the end of June 2019, the share of private pensions in GDP was 5.8 percent, compared to 5.22 percent in December 2018.

“The assets of private pension funds exceeded the EUR 12 billion level at the end of the first semester of this year and reached a weight of 5.8 percent in the GDP. The private pension funds are important institutional investors in the economy, and the investments made through BVB, together with other institutional investors, contributed to the promotion of the Bucharest Stock Exchange to the emerging market status by the FTSE Russell agency,” said ASF Vice-President Dan Armeanu.

The total value of net assets held on June 30 by privately administered pension funds (Pillar II) was RON 55.14 billion (EUR 11.64 billion), and the annual growth rate registered was 26.1 percent.

On June 30, 2019, 7.34 million participants were registered in the privately administered pensions system –  1.26 percent more than at the end of 2018.

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The average Pillar II contribution amounted to RON 182, while the average value of an account in the Pillar II system was RON 7,631 (EUR 1,612) – 14.3 percent higher than at end-2018.

In the first half of 2019, payments of net personal assets made to participants amounted to RON 33.29 million, for 3,522 participants and beneficiaries.

As for optional pensions (Pillar III), the total value of net assets on June 30 reached RON 2.27 billion (EUR 0.48 billion), registering an annual advance of 20.3 percent, ASF data shows.

At the end of June 2019, 486,310 participants were registered in the optional pension system – 3 percent more than at the end of 2018. The average Pillar III contribution was RON 138.

According to ASF data, the average value of an account in the optional pension system in June 2019 was RON 5,058 (EUR 1,068), having increased by 10.7 percent compared to December 2018.

In the first semester of 2019, net personal assets were paid to 4,033 participants and beneficiaries totaling RON 28.56 million.