PRIVATE PENSIONS IN ROMANIA - ECONOMIC AND SOCIAL SUPPORT MECHANISM

Madalina-Gabriela Anghel and Dragos-Alexandru Hasegan
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Madalina-Gabriela Anghel: ARTIFEX UNIVERSITY OF BUCHAREST
Dragos-Alexandru Hasegan: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

Annals - Economy Series, 2021, vol. 1, 71-81

Abstract: The private pension system, along with the public one, is an integral part of the pension system in Romania and aims to ensure a private, distinct pension, which supplements the pension granted by the public system. The social role of the private pension system in Romania derives from the budgetary relief of state social insurance, taking into account the demographic forecasts regarding the aging of the country's population, the continuous decrease of the birth rate, the decrease of the active labor force, the massive increase of pensioners and the increase of life expectancy. At the same time, another important role of the private pension system is the formation of domestic capital and its investment in the national economy. The massive increase in the number of pensioners, at the same time as the reduction in the number of employees means that the amounts that will be transferred from active employees to the state social insurance budget in the future will not be able to fully cover the amounts to be paid to current and future pensioners. At the same time, based on the progress made in the field of medicineand technological development, it is estimated that life expectancy will increase. Under these conditions, the authorities need to identify sustainable solutions to ensure a decent standard of living for the population after retirement. This fact is also highlighted at the level of the European Union, by paying additional attention to the elderly population.

Keywords: private pension; personal asset; participant; fund; administrator; contribution (search for similar items in EconPapers)
Date: 2021
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