Total assets of Romania's private pension system reach 9.44pct of GDP as of March 31, 2025

Romania's private pension market at the end of Q1 2025 reported total assets of RON 165.2 billion, up 18% year-on-year, and 5.6% from end-2024, the Financial Oversight Authority (FSA) announced on Thursday.

As a share of the Gross Domestic Product (GDP), the total assets of the private pension system was 9.44% at the end Q1 2025, marking a positive development over the last few years.

"Romania's private pension system in Romania continued to witness new records in 2025, consolidating its position as an essential pillar of long-term financial stability. The constant growth of assets, supported by upward contributions and solid investment performance, demonstrates an increased confidence of the contributors to this savings mechanism for the future. Private pension plans provide an important source of future income for millions of Romanians and, at the same time, actively contribute to the development of the real economy," according to ASF.

The total value of assets of privately managed pension plans (Pillar II) was 159.34 billion lei, as of March 31, 2025, up18.1% year-on-year, to a new all-time high.

The number of Pillar II system contributors was 8.33 million people at the end of March 2025, a slight increase from 8.29 million people at the end of the previous year.

At Pillar II level, the average contribution paid in March 2025 was approximately RON 403/contributor, while on December 31, 2024, its value was RON 384/contributor.

During the first three months of 2025, the contributions paid into the privately managed pension system amounted to RON 5.21 billion, up approximately 36% year-on-year.

The weighted average rate of return of all privately managed pension plans was 8.11% in March 2025, up from 6.19% at the end of 2024. At the end of March 2025, the average value of the assets of a participant in the privately administered pension system was RON 19,306, which is an increase of over 16% compared from the same period of the previous year.

In Q1 2025, payments of net personal assets to participants in the amount of RON 375 million were made to 12,341 participants and beneficiaries.

At the end of March 2025, government bonds and shares remained the main financial instruments in which privately managed pension plans invested. The investments of privately managed pension plans in government securities accounted for 67.6%, slightly up from 67.1% recorded on December 31, 2024.

At the same time, investments in stocks accounted for 23.2% of the total value of the assets of Pillar II pension plans. Also, the assets were invested in corporate bonds (4.42%) and investment funds (3.13%), with the percentage of current accounts and bank deposits being almost 1.7%.

As for Pillar III, the total value of the assets of optional pension plans was RON 5.86 billion at the end of March 2025, up by 16.4% year-on-year to a new record level.

The number of contributors in the optional pension system as of March 31, 2025, was 871,972, up 18.4% year-on-year.

Average Pillar III contribution in March 2025 was approximately RON168 /contributor, up 6.2% year-on-year.

Between January and March 2025, the contributions paid into the optional pension system amounted to approximately RON 217 million, up 28% year-on-year.

The weighted average rate of return of all high-risk optional pension plans was 8.73% in March 2025, while the weighted average rate of return of all medium-risk voluntary pension funds was 6.69%.

At the end of March 2025, the average value of an account in the optional pension system was RON 6,706, a slight decrease year-on-year.

In the first three months of 2025, payments of net personal assets to participants in the amount of RON 38.5 million were made for 2,710 contributors and beneficiaries.

At the end of March 2025, government bonds and shares remained the main financial instruments in which optional pension funds invested. Investments in government securities accounted for 66%, slightly down from 67% on December 31, 2024. At the same time, investments in stocks accounted for 25.1% of the total value of the assets of Pillar III pension plans. Assets were also invested in corporate bonds (3.6%) and investment funds (2.9%), with the percentage of current accounts and bank deposits being 1.5%.

The Financial Oversight Authority is a national authority established in 2013 by Emergency Ordinance 93/2012 approved by Law 113/2013, regulating and overseeing the insurance markets, private pensions, as well as the capital market. ASF is said to contribute to the consolidation of the integrated operating framework of the three sectors, which total over 10 million participants.