The private pension system in Romania hit a record high in November 2025, exceeding the threshold of 200 billion lei in total assets, equivalent to approximately 40 billion euros and over 11% of GDP, according to the vice president of the Financial Supervisory Authority (ASF), Dan Armeanu.
"This upward trend proves the economic maturity of the Romanian private pension system which, 17 years after its launch, has become an essential pillar of our national financial stability," Armeanu underscored in an opinion sent to AGERPRES on Monday.
According to him, a key moment in the development of the system was the adoption, on October 15, 2025, by the Romanian Parliament, of the draft law on the payment of private pensions, an essential legislative framework that clearly defines the modalities for withdrawing personal assets accumulated in Pillar II and Pillar III.
The ASF vice president emphasised that the private pension system fulfills a vital dual role: on the one hand, it offers citizens a mechanism for additional financial protection in retirement, and on the other hand, it acts as a major institutional investor, channeling savings to capital markets and supporting sustainable development.
"Private pension funds represent the largest segment supervised by the Financial Supervisory Authority (ASF), with a share of over 11% of GDP, higher than other non-banking financial markets. The share of assets in GDP has evolved from 3.01% in 2014 to over 11% in 2025, proving the sector's resilience in the face of global challenges such as persistent inflation, multiple crises and geopolitical instability," Armeanu mentioned.
According to him, the Law on the Payment of Pensions fully complies with the international principles specific to private pensions and achieves the purpose of establishing the private pension system in Romania. The Law on the Payment of Private Pensions establishes a clearly defined and internationally validated payment mechanism, according to the OECD assessment, which assessed the legislative framework as one of the most robust in the region.
Also, the Law on the Payment of Private Pensions fully respects the right of ownership, the right of guarantee and the right of inheritance, applicable to all categories of private pensions (Pillars II, III and IV). The law introduces the full guarantee of the amounts in payment, which ensures that the value of payments to the participant or heirs cannot be less than the accumulated personal assets, reduced exclusively by legal fees. This extended guarantee offers a high level of financial protection and eliminates the risk of savings being reduced during the payment phase, thus extending the rights of all participants in the system.
All provisions of the Law on the Payment of Private Pensions rigorously observe the elements of constitutionality, being built on the basis of already existing primary legislation (Law no. 411/2004 and Law no. 204/2006), harmonised with European and international standards. The legislative structure is comparable to private pension systems in countries that have implemented similar models, such as Bulgaria, Slovenia, Poland or Lithuania.
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