Romania's mandatory private pension system has generated a net gain of €17.8bn for savers since its launch in 2008, according to new figures published by the Romanian Pension Funds' Association (APAPR).

Marking 18 years since the introduction of Pillar II private pensions, APAPR revealed that the country's seven mandatory private pension funds had accumulated net assets of RON 228bn (€43.5bn) on behalf of 8.5 million participants as of 22 May 2026.

Over the same period, the funds collected gross contributions of RON 141.8bn and paid out around RON 7.2bn to approximately 335,000 beneficiaries and heirs.

According to APAPR, the difference between total assets and benefits paid, compared with contributions received, represents a net gain of RON 93.4bn (€17.8bn) for participants.

The association said the average annual return delivered by Pillar II funds since inception was 8.6 per cent, significantly above the average inflation rate of around 4.8 per cent over the same period.

The seven Pillar II pension funds achieved an average annual return of 19.2 per cent last year, marking a historic high for the system.

APAPR highlighted the growing role of the system within Romania's retirement landscape, noting that 8.5 million people are now enrolled in mandatory private pension funds, representing the majority of the country's active population.

More than 4.6 million members currently make regular monthly contributions.

The association also said Pillar II assets now account for approximately 11 per cent of Romania's gross domestic product (GDP), making them one of the country's most significant sources of long-term savings.

Indeed, APAPR estimated that more than one million Romanians have accumulated over RON 60,000 in their individual Pillar II accounts, while around 360,000 have balances exceeding RON 100,000.

The organisation also stressed the wider economic contribution of the pension funds, noting that around 95 per cent of Pillar II assets are invested domestically.

Around two-thirds of assets are invested in government bonds, while more than a quarter is allocated to companies listed on the Bucharest Stock Exchange.

With this in mind, APAPR described private pension funds as the most important domestic institutional investors in Romania, helping to finance the state, support economic growth and provide stability during periods of market volatility.

The association also pointed to the system's resilience amid a series of market shocks, including the Covid-19 pandemic, the war in Ukraine, rising inflation, and periods of domestic political uncertainty.

Meanwhile, despite recent geopolitical and economic volatility, Pillar II funds continued to generate positive investment returns during the first part of 2026.

APAPR said returns ranged between 7 and 10 per cent from the start of the year to 22 May, generating a further net gain of RON 18.1bn (€3.5bn) for participants.

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