The Association for Privately Administered Pensions in Romania (APAPR) has called for the annual tax-deductible contribution limit for voluntary private pensions to be increased from €400, after remaining unchanged for 17 years.

The industry association made the call following the Romanian parliament’s adoption of the draft law on Savings and Investment Accounts, arguing that the renewed focus on long-term saving should be extended to Pillar III pensions.

APAPR welcomed measures intended to encourage people to accumulate financial assets, particularly amid demographic pressures and the need for Romanians to diversify their sources of retirement income.

However, it argued that the legislative developments also provided an opportunity for the authorities to review the tax treatment of Pillar III, which is already used by more than 1.2 million Romanians, some of whom have been saving through the system for almost 20 years.

The annual deductible contribution limit has remained at €400 despite significant growth in both wages and the wider Romanian economy over the past 17 years.

APAPR noted it had advocated an increase for more than a decade through discussions with the authorities, describing an updated limit as a natural step towards making voluntary pensions more attractive and encouraging greater long-term saving.

APAPR also stressed that consumers should be able to select financial products according to their circumstances, risk appetite, time horizon, and savings objectives, rather than based on differences in tax treatment.

It therefore called for all long-term savings vehicles to operate within a fair, stable and predictable framework capable of supporting households in building greater financial security.

The call comes amid continued growth in Romania’s voluntary pension market.

Pillar III funds recorded their strongest annual performance to date in 2025, delivering an average return of 19.6 per cent, while membership and contribution levels also reached record highs.

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