The most important move that has to be made on the market of private pensions is to raise participants’ contributions to the highest level the government can afford because otherwise the pension system reform will not have any effect and many employees will not have enough income after retirement, states Mircea Oancea, chairman of the Private Pension System Supervision Commission (CSSPP). “We must delude ourselves that all the people contributing to the private pension system will have adequate pensions, there will be people with small pensions,” Oancea told ZF in an interview. He believes contributions should amount to at least 15% in personal income, so that after 20-30 years one can have a pension comparable with income generated during the active period. CSSPP currently watches a market made up of 12 mandatory pension funds and 13 voluntary pension funds, with their assets totalling some 480m euros. In several years, pension funds will go beyond the 1bn-euro threshold in terms of assets.
ZF English
CSSPP head: Not all people contributing to private pensions will have adequate pensions
The most important move that has to be made on the market of private pensions is to raise participants' contributions to the highest level the government can afford because otherwise the pension system reform will not have any effect and many employees will not have enough income after retirement, states Mircea Oancea, chairman of the Private Pension System Supervision Commission (CSSPP).