Private pension funds report record number of new subscribers in 2023

Some 83,000 Romanians started in 2023 to make contributions to voluntary private pension funds (Pillar III), a record for the number of newly attracted customers in the system in a single year since 2008, according to a press release of the fund managers’ association APAPR.

The number reflects “ the high level of confidence of the population in private pensions,” the association says – but it might also indicate that the companies are including such pension funds as part of the compensation package as such contributions are partly deductible (up to EUR 400 per subscriber).

The total number of contributors to the 10 Pillar III funds thus reached 710,000 at the end of 2023, while the funds’ net assets reached RON 4.74 billion (EUR 953 million), 31% more compared to the end of 2022, Bursa.ro reported.

In 2023, the Pillar III pension funds recorded a weighted average return of 16.8%, approximately 10 percentage points above the inflation rate, consolidating their very good long-term performance.

Over the entire period of operation (2007-2023), optional pension funds generated an average annual return of 6.13%, compared to an average yearly inflation rate of 4.61%, according to APAPR.

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