Evolution of the private pension system in the first 9 months of 2023

Bucharest, 5 February 2024 – The private pension market in Romania reached, at the end of September 2023, total assets of RON 121.55 billion, up 21.5% compared to the end of the previous year and 32% compared to September 2022.

As a share of GDP, total private pension scheme assets stood at over 8% at the end of September 2023, marking a positive development over the last few years. In the third quarter of 2023, the volatility of private pension funds' net unit assets was moderate, with no short-term shocks.

Private pension funds are institutional investors that mainly support the local economy, while acting as a balancing and stabilising factor for the financial market.

Pillar II

Total assets of privately administered pension funds amounted to RON 117.17 billion at the end of September 2023, an increase of about 32% compared to the same date in 2022. This represents an all-time high and is the best year on record for the privately administered pension scheme (Pillar II). Compared to December 2022, the value of total assets increased by 21.5%.

The number of registered participants in the Pillar II scheme was 8.09 million, up from 7.96 million at the end of the previous year.

At Pillar II level, the average contribution of participants, with contributions paid on 30 September 2023, was approximately RON 266 /participant, while on 31 December 2022 it was RON 237 /participant.

In the period January-September 2023, contributions paid into the privately administered pension scheme amounted to RON 9.54 billion, an increase of about 16% compared to the same period in 2022.

The weighted average rate of return of all privately administered pension funds was 5.86% in September 2023, up from 4.13% at the end of 2022.

At the end of September 2023, the average asset value of a participant in the privately administered pension scheme was RON 14,630, an increase of almost 29% compared to the same period last year and an increase of 19.5% compared to the end of 2022.

During the first nine months of 2023, net personal asset payments were made to participants in the amount of RON 654 million for 39,976 participants and beneficiaries.

At the end of September 2023, government securities and equities remained the main financial instruments in which privately administered pension funds invested. Private pension funds' investments in government securities represented 64.4%, up from 62.3% at 31 December 2022. At the same time, investments in equities accounted for 23.3% of the total assets of Pillar II pension funds. Assets were also invested in corporate bonds (5.09%) and bank deposits and current accounts (3.79%).

Pillar III

Total assets of voluntary pension funds were RON 4.38 billion at the end of September 2023, up by about 31% compared to the same period last year. Compared to December 2022, the value of total assets increased by 21%.

The number of registered participants in the voluntary pension scheme on 30 September 2023 was 687.4 thousand people, up 9.7% compared to the end of the previous year and 13.8% compared to the same period in 2022.

At the Pillar III level, the average contribution of participants with contributions paid on 30 September 2023 was approximately RON 157 /participant, a level similar to that recorded in the same period of the previous year.

In the period January-September 2023, contributions paid into the voluntary pension scheme amounted to approximately RON 436 million, up 19% compared to the same period in 2022.

The weighted average rate of return of all high-risk voluntary pension funds was 5.41% in September 2023, while the weighted average rate of return of all medium-risk voluntary pension funds was 4.33%.

At the end of September 2023, the average value of an account in the voluntary pension system was RON 6,366, 10.3% higher than at the end of the previous year.

In the period January-September 2023, net personal asset payments were made to participants in the amount of RON 85 million for 8,512 participants and beneficiaries.

At the end of September 2023, government securities and equities remained the main financial instruments in which voluntary pension funds invested. Investments in government securities accounted for 64.5%, up from 63% at 31 December 2022. At the same time, investments in equities accounted for 25.2% of the total assets of Pillar III pension funds. Assets were also invested in bank deposits and current accounts (3.7%) and corporate bonds (3.6%).

The report on the evolution of the private pension system in Romania in the first 9 months of 2023 can be found HERE ( in Romanian)