Romania should stay the course – funded private pensions the key to sustainable future, PensionsEurope warns
After the Romanian government has decided to cut the contributions to pillar II to 3.75% (instead of raising to 6% from the actual 5.1% as mentioned in the initial draft bill), people in Romania are now facing a significant risk of suffering a decrease in their future retirement income, PensionsEurope warns.
“Funded pension are vital for future pensions as public pension come increasingly under pressure. Romania has been able to build excellent private pensions and should not start to dismantle them by lowering the level of contributions”, Janwillem BOUMA, the Chair of PensionsEurope, said.
“Good pension reforms are based on in-depth analysis and long-term goals on adequacy and sustainability. The private pensions of Romania fulfill these goals and it is of utmost importance to continue with the long-term policy. Instead of decreasing the contributions, the government should increase them in accordance with the long-term plans. This would increase the citizens trust in the whole pension system, which is vital for any long-term policy”, Matti LEPPALA, the Secretary General of PensionsEurope, added.
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