Pension system based on saving such as Pillar II, necessity in current demographic circumstances, according to AHK

A pension system based on saving, such as Pillar II, represents a necessity, if we take into account Romania's demographic evolution, confirmed by the forecasts carried out by the international bodies, the representatives of the Romanian - German Chamber of Commerce and Industry (AHK Romania) consider in a press release sent to AGERPRES on Wednesday. 

"This [Pillar II, ed.n.] will contribute, alongside Pillar I, to improving the pensioners' quality of life. The companies we represent and which hire 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 Private Pensions Pillar II has generated good results since its establishment to the present moment, with reduced costs and maximum security for participants, the Romanians who make savings through Pillar II being guaranteed the value of their net contribution wired throughout the entire saving period, irrespective of the evolutions of the financial markets," the release specifies. 

According to AHK, over 7 million people currently save money in the Private Pensions Pillar II, in whose name over 8.9 billion euro are being managed. 

The representatives of the German investors in Romania mention at the same time that the pension funds and the money they manage privately also bear special importance for the local financial markets and a modern and advanced economy able to reach a real convergence with countries in western Europe needs sophisticated, liquid and stable financial markets. 

"This aspiration would be difficult to achieve in the absence of privately managed pension funds and the long-term investments they carry out. These funds are some of the most important government securities' holders, playing 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 reduced levels of saving money. Only the existence of institutional investors such as private pensions funds can bring the stability the local financial market will need to develop in the future," the quoted source underscores. 

The Romanian - German Chamber of Commerce and Industry (AHK Romania) officially represents the German economy and at the same time the largest bilateral Commerce Chamber in Romania. Established in 2002, the Chamber has over 600 member firms and provides companies with an important platform for networking, exchanging information and experience.