The monthly amount transferred in contributions to mandatory private pension schemes (Pillar II) is currently 50 percent higher than a year ago an.
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The assets managed by Pillar II and Pillar III pension funds topped 80 billion lei, while the annual contributions are in excess of 10 billion lei, according to data presented on Tuesday in a specialist video conference by vice-president of the Association of Romania s Privately-managed Pension Funds (APAPR) Andreea Pipernea. The assets held by Pillar II and Pillar III pension funds have exceeded 80 billion lei, and the figure is constantly growing. Annual contributions are in excess of 10 billion lei. It is an important figure in the context of the capital market, because having in view that about 25 percent of these amounts is regularly put into stocks, this means a liquidity inflow from the pension system on a monthly basis, said Pipernea.
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Mandatory privately-managed pension funds (Pillar II) achieved in 2020 an average rate of return of 6.19 percent, three times higher than last year s inflation rate, president of the Association of Romania s Privately-managed Pension Funds (APAPR) Radu Craciun said on Monday.
He pointed out that, in monetary terms, Pillar II funds generated in 2020 an exclusive net gain of 900 million euros net of fees. The average annualized return from the beginning of the system until the end of 2020 was 8.2 percent, whereas the average inflation during this period was about 3 percent. Overall, the net gain for the contributors to Pillar II funds was 3.5 billion euros, investment return. (.) If we look at the only year in which private pension funds did not outperform inflation, we understand that the only major risk for the privately managed pension funds is the political risk, because 2018 was a very special year from this point of view, a year in which the political