ROMANIA, Private Pensions, Pillar II, H1 2020: payments of RON 71.25 million for 5,188 participants and beneficiaries
The value of the total assets under management, at the level of the entire Romanian private pensions system, has reached the amount of RON 68.57 billion, at the date of 30.06.2020, exceeding in European currency equivalent the value of EUR 14 billion, increasing by 6.31%, as compared to December, 2019.
Moreover, the share of private pensions in GDP, at the end of June, 2020, was of 6.39%, above the level of December, 2019.
"The economic context in the first six months of the year 2020 was influenced by COVID-19 pandemic, which has generated economic imbalances both at the national and international levels. In this difficult climate, the private pensions market has recorded the performance of exceeding the threshold of EUR 14 billion managed assets, therefore confirming the recovery estimated in V. A determining factor in the favorable evolution of assets, in Semester I of this year was the capital market, which has rectified, after the sharp decline recorded by BET index during the lock-down period and has charted an increase of the index in August, up to a value close to that registered at the end of 2019", stated the Vice-President of the Financial Supervisory Authority, Dan ARMEANU, coordinator of the Private Pensions Sector.
Privately Managed Pensions (Pillar II)
The total value of net assets of the privately managed pension funds was, at the date of 30.06.2020, of RON 65.94 billion (EUR 13.62 billion), registering an annual rate of growth of 19.59%, evolution that takes also into account the recent economic effects caused by COVID-19 pandemic.
At the end of June, 2020 there were registered in the privately managed pensions systems 7.56 million participants, 1.25% more than the end of the year 2019.
Also, the average value of an account in the privately administered pensions system was of RON 8,859, recording an increase by 5.05% compared to December 2019.
During January - June 2020, there have been performed payments of the net personal asset by the participants, in amount of RON 71.25 million for 5,188 participants and beneficiaries.
Facultative Pensions (Pillar III)
At June 30th, 2020, the total value of net assets registered by the facultative pensions funds was of RON 2.60 billion (EUR 0.54 billion), recording an annual advance payment of 14.53%.
At the end of June, 2020, 517,057 participants were registered in the facultative pensions system, 3.18% more than the end of the last year. At the end of the first Half of the year, the average value of an account of the participants to the facultative pensions system was of RON 5,513, recording an increase by 1.70%, as compared to December, 2019.
During the period January-June, 2020 there have been performed payments of the net personal asset to the participants, amounting to RON 35.29 million for 3,775 participants and beneficiaries.
Author: Andrei Victor
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