Voluntary pensions attracted 5,500 more contributors during May
5,500 more Romanians started contributing in the voluntary pensions (3rd pillar) system during the month of May, according to a survey by the specialized web portal www.pensiileprivate.ro, based on data published by the pension companies. Those new participants chose the voluntary pension funds managed by ING Life (3,220 new customers), BCR Life, (1,583) and ALLIANZ-TIRIAC Private Pensions (363). The total number of 3rd pillar participants thus reached 87,836 at the end of May, 7% more than in April.
Also, the net assets under administration of the industry grew by 18% (in RON) during May, reaching EUR 9.55 million, compared to only EUR 8 million at end-April. There are seven funds on the Romanian voluntary pensions market.
Furthermore, May did not bring any significant changes in the market rankings. ALLIANZ-TIRIAC remained market leader by number of clients, (and a market share of 35.9%, compared to 31.6% for ING and 24.8% for BCR), while BCR kept its market leader position by total assets under management (with a market share of 33.8%, compared with 30.4% for ALLIANZ-TIRIAC and 28% for ING). BCR Prudent also maintained its top position among the biggest voluntary pension funds, both by participants and net assets.
The overall development of the voluntary pension market was somewhat slow in May, continuing the trends already seen this year. So far, voluntary pensions (pillar III) were shadowed by the mandatory pensions (pillar II). Only after starting collecting the first contributions to pillar II (on the 20th of May), the players on both markets can focus on selling voluntary pensions.
Anyone with earnings from a salary (even from freelance and liberal activities) can save for a voluntary pension, within the limits of a 15% contribution from the gross monthly revenues. For now, clients can choose among seven funds, but they might reach a number of ten this year.
