Local mandatory pension system is second-largest in Europe

This amount is a mere 7.7 percent of the Polish mandatory private pension market’s assets, the largest in Europe, worth some €39 billion.

Initial estimates of some 3.7 million subscribers to the second pillar has in fact been surpassed, reaching some 4 million, due to a high number of employees aged 35-45 who joined the mandatory private pensions system, although not compelled to. Choosing a Pillar II fund was only mandatory for employees under 35.

Meanwhile, authorities are looking for a rapid solution to improve mandatory pension legislation. They are trying to stipulate guarantees for subscriber contributions, through guarantee funds and minimum yields, aimed at covering the rate of inflation.

Fund administrators are asking CSSPP to change the legislation to be allowed to invest pension contributions in a wider range of financial instruments, which could lead to higher yields.

The Romanian Pillar II market has attracted 18 funds, with ING (1.27 million subscribers and a 30 percent market share), Allianz Tiriac (1.01 mln subscribers) and Generali (400,000 subscribers) as market leaders.