The Demographic Trends on Pension Systems in Romania

Abstract

Within national pension systems, the role of private pensions tends to become increasingly important. In support of this idea, we recall the conclusion that has been made by research that has taken place over time that the value of private pension fund assets has risen on average by 11.5% annually. The impressive value of assets becomes extremely tempting for investors who see extremely good long-term investment opportunities if we consider the amounts traded. The Romanian pension system has entered a continuous process of change, not always with positive consequences on the level of pensions. The truly significant reforms have only emerged since 2000, being favored by the country's accession to the European Union. Unlike other states, in Romanian the 2008 crisis affected the pension system especially in its public component. Private funds have resisted fairly well the problems that have arisen, partly because of the extremely prudent investment policy. The paper attempts to capture the pressures on pension systems, also making a series of forecasts on future developments in different hypotheses of the economic and social context.