The evolution of the private pension system in Romania in the first quarter of 2025

Bucharest, 19 June 2025 – At the end of the first quarter of 2025, the private pension market in Romania reached total assets of RON 165.2 billion, up by 18% compared to the same period last year and 5.6% compared to the end of 2024. As a share of Gross Domestic Product (GDP), total assets of the private pension system stood at 9.44% at the end of the first quarter of 2025, marking a positive trend over the last few years.  

Thus, the private pension system in Romania continued to set new records in 2025, consolidating its position as an essential pillar of long-term financial stability. The steady growth in assets, supported by rising contributions and solid investment performance, demonstrates the increased confidence of participants in this savings mechanism for the future. Private pension funds provide an important source of future income for millions of Romanians and also actively contribute to the development of the real economy.

Pillar II

The total value of privately managed pension funds (Pillar II) was RON 159.34 billion on 31 March 2025, up by 18.1% compared to the same date in 2024, thus reaching a new all-time high.

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

At the level of Pillar II, the average contribution of participants, with contributions transferred in March 2025, was approximately 403 lei/participant, while on 31 December 2024, it was RON 384/participant.

During the first three months of 2025, contributions transferred to the privately managed pension system amounted to RON 5.21 billion, up by approximately 36% compared to the same period of the previous year.

The weighted average rate of return on all privately managed pension funds 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 managed pension system was RON 19,306, an increase of over 16% compared to the same period of the previous year.

During the first quarter of 2025, net asset payments were made to participants in the amount of RON 375 million for 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 funds invested. Private pension fund investments in government securities accounted for 67.6%, slightly up from 67.1% on 31 December 2024. At the same time, investments in shares accounted for 23.2% of the total value of pension fund assets in Pillar II. Assets were also invested in corporate bonds (4.42%) and investment funds (3.13%), with current accounts and bank deposits accounting for nearly 1.7%.

Pillar III

The total value of voluntary pension fund assets was 5.86 billion lei at the end of March 2025, up 16.4% compared to the same period last year, reaching a new record level.

The number of participants registered in the voluntary pension system as of March 31, 2025, was 871,972, up 18.4% compared to the same period in 2024.

At the level of Pillar III, the average contribution of participants in March 2025 was approximately RON 168/participant, up 6.2% compared to the same period last year.

Between January and March 2025, contributions to the voluntary pension system amounted to approximately RON 217 million, up by 28% compared to the same period in 2024.

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

At the end of March 2025, the average value of an account in the voluntary pension system was RON 6,706, slightly down compared to the same period of the previous year.

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

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

The report on the evolution of the private pension system in Romania in the first three months of 2025 can be consulted HERE.