There is an account in your name. Have you checked it?
YOUR MONEY DOESN'T STAY. IT WORKS
If you found out how much you have in your Pillar II account, the next question probably arises:
Good, and what happens with this money?
The short answer is: I do not stay in an account that is waiting for your retirement.
They are invested.
Not from you or from each participant individually, but from the pension fund administrator, according to strict rules established by law and supervised by the Financial Supervisory Authority (ASF).
Today, over 8.5 million Romanians contributes to Pillar II, and the value of the managed assets exceeds 237 billion lei. There is money that works, day by day, for the future of the participants.
WHAT ARE THEY INVESTED IN?
The Pillar II Funds invest in several types of assets to seek a balance between growth potential and risk management.
Almost two thirds of assets are invested in government securities, and approximately a quarter îin listed stocks. The rest is invested in bonds and other financial instruments permitted by law.
Besides your monthly contributions, the account value can also increase through the results of these investments.
AI AND A WORD TO SAY
You may not have known, but you are not bound for life to the fund administrator to whom you contribute.
If, at some point, you consider that another administrator better meets your expectations, you can transfer your savings to another Pillar II fund, in the conditions provided by law.
Therefore, it is worth checking from time to time who manages your fund and how it has evolved over time. It is good to know that if you transfer to another Pillar II fund before completing 2 years at the current one, at the time of transfer, the current administrator may charge you a transfer penalty of 5% of the value of the transferred asset. After 2 years, this penalty no longer exists.
WHAT CAN YOU DO RIGHT NOW?
You don't have to monitor the markets daily or be an expert in investments.
But it is worth doing three simple things:
- check which Pillar II fund you contribute to here, if you have not done it already
- see how much you have accumulated so far, it's your money
- inform yourself about the fund administrator and the options you have
Because Pillar II does not mean only monthly contributions.
It means money that works for your future. And you have more control over it than you might think.
