About 133,000 Romanians began to save in 2024 to save for the age of withdrawal through the optional private pension funds, 40% more than in 2023 and representing a historical record for the number of newly-then-in-system customers, in a single year, According to a statement sent on Monday by the Association of Private Administered Pensions (APAPR). The total number of participants in the ten optional pension funds reached almost 833,000 at the end of 2024, the total net assets administered by Pillar III exceeding 5.5 billion lei (1.1 billion euros) at the end of 2024, with 17 % increasing compared to 2023. In 2024, participants transferred to personal accounts in Pillar III contributions totaling 752 million lei, 25% more than in 2023, a record value for the system, according to APAPR data. Also, the ten optional pension funds made in 2024 payments worth almost 150 million lei (plus 32% year/year) to 11,800 beneficiaries (up 5% compared to 2023). The total payments made by Pillar III for the entire service life (2007-2024) reached 785 million lei to approximately 91,000 beneficiaries. During the entire service life (2007-2024), the optional pension funds generated an average annual performance of 6%, compared to an average annual inflation rate of 4.6%, according to APAPR calculations. In monetary terms, Pillar III generated a profit for participants worth 1.45 billion lei (291 million euros), net by all commissions, in addition to the contributions received in administration. All Romanians who register professional revenues (employees and those with independent activities, assimilated to employees), but also employers, who can provide additional contributions to Pillar III on behalf of the employees, as part of the benefit package, as part of the benefit package, as part of the benefit. extra-salary. Participants in Pillar III can withdraw their money accumulated at any time after reaching the age of 60, and they can continue to contribute after this age. The money saved in Pillar III can be received either as a single payment or in monthly tranches for no more than 5 years. Currently, contributions to Pillar III are deductible within 400 euros / year for both individuals and employers. The deductibility ceiling has not been increased since 2009 and so far, reducing the attractiveness of the system and discouraging additional saving for old age. “In this context, APAPR welcomes the government's promise to increase this ceiling, according to the assumed governing program. The increase of fiscal deductibility for Pillar III is likely to encourage both individuals and companies to contribute for additional income to withdraw from the activity, while reducing pressure on the public pension system. ”
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