Pages: 7-21
Introduction. The evolution of Romania’s pension system has followed a complex and often inconsistent legislative path, beginning with two unimplemented laws, and later progressing to the introduction of a multi-pillar system. Initially accompanied by optimism, the momentum behind pension reform soon faded, resulting in significant delays in implementing crucial regulations, such as the law on the guarantee fund. It was not until 2020 that substantial progress was made with the introduction of laws on occupational pension funds and the pan-European personal pension product (PEPP).
Aim of the study. This paper aims to assess the impact of Romania’s evolving legislative framework, including secondary regulations, on the private pension market. Additionally, the paper examines the broader transformations and challenges facing the Romanian pension system, focusing on demographic shifts, socio-economic factors, and policy decisions that have shaped its current state. Key issues such as early retirement, the inclusion of low-contributory groups, and untaxed activities are analysed alongside the supply side of the market, including public, mandatory, and voluntary pensions, as well as occupational schemes. The implications of PEPP and strategies for financing the transition to a more sustainable system are also explored. By addressing these critical aspects, the paper provides a comprehensive analysis of Romania’s pension system and suggests actionable steps for improving its long-term sustainability and efficiency.
