Romanians should invest at least 15% of their monthly income in a voluntary pension fund for 20 years in addition to the contribution to the state and the mandatory pension, in order to afford a cruise as is the case of pensioners in Western European countries, estimate officials of private pensions firm Eureko.
The overall contribution to the state pension and to the mandatory private one is estimated to account for less than half the average salary in 2027.
More than 5.2 million Romanians currently contribute 3% of their gross income to a mandatory pension fund (2nd pillar), while the number of people who contribute to a voluntary pension fund (3rd pillar) is more than 20 times lower, according to official statistics. The contribution of an employee to the state pension accounts for 10.5% of their gross income, of which 3% is transferred into the mandatory pensions system.
"The state pension and the 2nd pillar pension will not provide enough income for Romanians to be able to afford to go on a cruise every year in 20 years' time, as do pensioners in the more developed countries of Europe. On Western European markets, the incomes supplied from the 1st and 2nd pillar pension systems are estimated to cover around 70% of the average salary, while on the Romanian market, it is estimated that future pensioners will collect pensions worth up to 50% of the average salary from the 1st and 2nd pension pillar, if the contributions calendar is observed," said Radu Brăgarea, general manager of Eureko private pension company.
Romanians should invest at least 15% of their monthly income in a voluntary pension fund for 20 years in addition to the contribution to the state and the mandatory pension, in order to afford a cruise as is the case of pensioners in Western European countries, estimate officials of private pensions firm Eureko. @N_P
