Government changes rules for Pillar II: only 30% upon retirement, the rest in 8 years
Articol de Radiojurnal, 21 August 2025, 20:37
The over 8.3 million Romanians who contribute to mandatory private pensions under Pillar II will be able to withdraw only 30% of the amount upon retirement, the rest to be paid in equal installments over 8 years and not 10 as before.
The changes were included in a bill approved by the Government on Thursday and will enter into force after the adoption of the normative act in Parliament. Petruta Obrejan explains.
Reporter: Financial Supervisory Authority Vice President Stefan Armeanu stated that the bill approved by the executive fulfills a strategic objective for Romania, namely accession to the OECD.
He drew attention to the fact that, if Pillar II beneficiaries opt for the pension to be spread over a longer period of time and below the value of 3.000 lei, then they no longer pay taxes and fees.
Stefan Armeanu: In general, such taxation determines a coefficient of approximately 12 - 13% of the total value of the asset. These are the only taxes that each person pays. It depends on the payment method, if the value of the pension is below 3.000 lei, then he no longer pays taxes and fees. So a clear advantage of the installment plan is a gain that the person makes from taxation, plus a gain that they will also make from the use of the respective amounts during the respective period.
Stefan Armeanu also said that through this draft law, the right to property and inheritance are respected, specifying that the amounts from the second pillar are inherited in full under any conditions.
The Vice President of the Financial Supervisory Authority also said that in addition to the accumulated money, a profit will also be obtained as a result of their investment by the payment funds.
Translated by: Radu Matei
