Romanians should save up to EUR 3,700 each year for a decent pension, says Aviva

Romanians who plan to retire sometime between 2011 and 2051 should save on average EUR 3,700 each year for a decent living after retirement, according to a study carried out by Aviva together with Deloitte. Romania has a pension deficit* of EUR 40.2 billion, about one third of the country’s GDP.

According to the same study, those with no extra savings will have to choose between three options when they retire: to work after the retirement age, to retire later or to accept a much lower standard of living.

”Up until now, for the large majority, the state was considered responsible for their financial safety after retirement. However, for the generation who will retire in the next 10-20 years it becomes more and more obvious that things will no longer be that easy”, said Daniela Vasile, CEO of Aviva Societate de Administrare a unui Fond de Pensii Privat. She added that people should start saving from the moment they get their first job and not for just a few years before retiring. In Romania about 11 million people will retire in the next 40 years according to Aviva.

British insurance group Aviva entered the Romanian market in 2000 and it now manages two local companies, Aviva Asigurari de Viata si Aviva Societate de Administrare a unui Fond de Pensii Privat.

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 Simona Bazavan

* The pension deficit is the difference between the income required for an adequate standard of living after retirement and the amount of money that people presently expect to receive as pension.