A saving-based pension system such as Pillar II is a necessity if we take into account Romania’s demographic evolution, confirmed by the forecasts made by international bodies, the German-Romanian Chamber of Commerce and Industry (AHK Romania) shows in a press release.
“This (Pillar II, editor note) along with Pillar I, will contribute to improving the quality of life for future retirees. The companies we represent and which employ several hundred thousand people consider the current pension system, built on the three saving pillars, is one that will be able to support the responsibility of ensuring an income at the end of the employees’ career.
Romania’s Pension Pillar II has generated very good results since its establishment until now, at low costs and maximum security for the participants, the amount of net contributed contributions during the savings period being guaranteed to Romanians that save on Pillar II, regardless of financial market developments,” the release reads.
AHK points out that more that 7 million people are currently saving money in the Private Pensions Pillar II, in whose name over EUR 8.9 billion are administered.
The representatives of German investors in Romania also mention that the pension funds and the money they manage privately are very important for the local financial markets and a modern and advanced economy that reaches a real convergence with Western European countries needs sophisticated, liquid and stable financial markets.
“These funds are some of the most important holders of Romanian government securities, having an extremely important role in financing current activities of the state and being an essential provider of short-term liquidity. Romania is a country with a poorly developed financial market and low savings rates. Only the existence of institutional investors such as private pension funds can bring the stability that the local financial market will need to develop in the future,” AHK release concluded.