This event launches the private pension savings market, which was previously virtually non-existent in the country, despite a number of previous unsuccessful attempts to introduce voluntary pensions in Moldova.
With the appearance of the first private pension fund, citizens have the opportunity to save for their old age on their own, in addition to the state pension. Contributions are exempt from taxation and will be capitalized to generate additional income in the future.
Until now, Moldova’s pension system relied solely on the state social insurance budget. With the launch of the first private fund, residents have an alternative for the formation of long-term savings under the supervision of the financial regulator, which approved the prospectus of the voluntary pension plan of the fund “ARAGONN”.
The NCFM also approved the investment company “BROKER M-D” SA as the depositary of the voluntary pension fund and the form and content of the individual agreement on joining the pension fund. The activities of the fund and its administrator will be strictly regulated and checked by the regulator for reliability of the applied investment instruments for capitalization of the fund’s assets.
To participate in the first voluntary pension fund in Moldova, it is necessary to conclude an individual agreement with the fund administrator, where the amount and schedule of contributions are fixed. The minimum contribution is 300 lei.
According to Roman Andronicus, Chairman of the Board of ARAGONN GRUP JSC, “there is no upper bar limiting the amount of contribution, but only 15% of the gross income received by the participant of the fund – the amount equal to his contribution will be exempt from income tax, provided it is invested in the future pension”.
The system does not limit citizens by age or income – participation is completely voluntary. It is possible to become a participant in the voluntary savings system independently (individual plan) or through an employer, if it offers a pension plan for its employees. The contribution can also be divided between the employee and the employer in accordance with the terms of an individual contract of adhesion.
Tax benefits and advantages Moldovan legislation provides specific incentives for participants in voluntary pension funds. The main objective is to make private savings more profitable than simply keeping money on deposit.
From 2026, new tax deduction mechanisms are introduced in Moldova to incentivize private savings. Tax deductions are envisaged. The amounts of contributions paid to a voluntary fund can be deducted from the taxable income of the participant (within the limits established by law).
Benefits are introduced for employers. Companies that pay contributions on behalf of their employees are also entitled to tax deductions, which reduces their personnel costs.
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