KPMG: One employee will support 1.74 retirees in Romania in 2050

An employee in Romania will have to support 1.74 retirees by 2050, according to a study by financial consultancy firm KPMG. In 1990, the ratio was 0.3 retirees for each employee. The mandatory private pension funds (Pillar II) are thus a necessity, according to KPMG. The population aging will increase the burden on the state pension system. According to the KPMG study, in Europe the target is that the first pension is not lower than 70% of the last salary. In Romania, the percentage is 52%, including a 15% contribution from Pillar II, calculated based on the current contribution level of 3.75% of the gross wage. At a contribution of 6% of the gross wage, Pillar II would contribute 20%. The Coalition for Romania’s Development (CDR) asked on Thursday, May 24, that the Government maintains the current structure of the local pension system, based on three pillars and that it increases, in the shortest time possible, the contribution to private pension funds from 3.75% to 6% of the gross wage. editor@romania-insider.com