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New Pension Law: Government Plans to Raise Retirement Age and Calculate Pensions in Romania

The government plans to raise the retirement age through the new pension law.

Thus, the retirement age could be over 65 years.

“Starting with the date of completion of the stagger set out in Annex 5 to the law, the minimum period of contribution, the full period of contribution and the standard retirement age, provided for by this law, are increased according to the evolution of life expectancy in Romania, at an interval of maximum 3 years”, the new retirement law states.

The former Minister of Finance, Gheorghe Ialomițeanu, explained exclusively on Antena 3 CNN, that many Romanians will have to work until they are 70 years old.

“Those with lower pensions will have to work until they are 70 years old because the pension will not be enough to cover expenses.

But, by the fact that they will index, from January 1, with 13.8%, it is below the level of the inflation rate from 2022 which was 16.4%, and the inflation rate from 2023 is not taken into account”, explained Gheorghe Ialomițeanu , former Minister of Finance, at Antena 3 CNN.

Here is how the new pensions of Romanians will be calculated according to the formula in the new pension law.

The new formula in the pension law: the reference point value (VPR) multiplied by the number of pension points you have in your retirement decision.

Thus, every Romanian pensioner can calculate by himself, at home, the new pension he will receive from 2024.

For Romanians who do not know the value of the reference point (VPR), it is equal to the pension point (which in 2024 will be 2,031 lei, if the Government increases the pension point by 13.8% as Prime Minister Marcel Ciolacu says) divided at 25 years of contributions, because this is the average number of years of contributions, and is equal to 81 lei.

Read also: The new pension calculation formula! Table of standard retirement age by month and year of birth

Pension calculation formula

VPR x total points

VPR (setpoint value) = 2031 : 25 = 81.

After you have found out what the VPR is, you look in the retirement decision and simply multiply 81 lei by the total number of points in the retirement decision and you will get the pension you will have according to this new formula.

2023-11-02 14:00:33
#government #plans #raise #retirement #age #work

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