Romania’s mandatory private pension system recorded its strongest annual performance to date in 2025, achieving an average return of 19.2%. According to data from the Association of Private Pension Administrators (APAPR), total net assets reached a historic peak of EUR 39.5 billion (RON 201.6 billion) by year-end, representing an increase of more than 33% compared to the end of 2024.
The results were driven by the robust performance of the Bucharest Stock Exchange and improved valuations for Romanian government bonds, which together account for the vast majority of the system’s investment portfolio.
The total value of the assets now represents 10.5% of Romania’s GDP, with approximately 94% of the capital invested locally. Out of the total net assets, more than a third consists of net investment gains, amounting to EUR 14.8 billion in addition to the contributions received.
Since the system’s inception in 2008, Pillar 2 has maintained an average annual return of 8.3%, significantly outperforming the average annual inflation rate of 4.7% recorded during the same period.
Approximately 8.4 million Romanians are currently enrolled in the system, with over 1.1 million participants now holding balances exceeding RON 50,000 in their personal accounts.
For instance, a participant earning an average salary who has contributed since the system’s launch now has an accumulated total of approximately RON 55,662. The data also reveals a significant increase in payouts, with RON 2.65 billion distributed to 88,000 beneficiaries in 2025 alone, a figure that more than doubled compared to the previous year.
Current legislation governing payouts will remain in effect throughout 2026, offering beneficiaries the choice between a single lump-sum payment or monthly instalments over a period of up to five years.
According to APAPR, digital engagement has also reached new levels, as over 1.5 million participants now utilise online portals to monitor their contributions and account growth.
