More than 1.8 million Romanians born after 1968 will be heavily affected in their pensions. A simple calculation shows the problems they will face.
Romania’s demographic problems will intensify in the next 20-30 years, the decline of the pension system will begin in 2030, when a large part of the “decrees” will be pension.
Currently, the number of employees with a work permit is slightly higher than that of pensioners, which gives some stability.
Concretely, the number of active employees is currently 5.71 million people, according to the data provided by the Labor Inspectorate. Of these, 4.5 million employees are from the private sector, and 1.2 million work for the state.
Regarding the number of pensioners, in December 2022, according to CNPP data, almost 4.8 million pensioners were registered, the average pension being 1,739 lei.
Despite all these figures, the state supplements the budget of the public pension system every year, having to grant a series of benefits to pensioners with very low incomes.
According to the data of the last census, things will not be better even in the next two or three decades.
Previous studies show that the balance between the number of employees and the number of retirees could equalize only towards the end of the century.
Economists say that, if the current calculation method is maintained, pensions will be much lower in 35 years, compared to the current average level.
Specifically, the minimum gross salary estimated for the year 2023, on the basis of which the state insurance budget was founded, is 6,789 lei, which means that he would pay almost 1,700 lei monthly to the public pension system, i.e. 20,400 lei/year, respectively 714,000 lei during the entire period of 35 years until retirement.
This will, however, provide him with a much smaller pension, because between 2050-2060 the population of Romania will be between 13 and 16 million, which means that the current pension system becomes unsustainable, given that the number of employees will be much lower than the number of pensioners.
The decrees are the children born in the period 1968-1990, when the communist regime banned abortions and discouraged the use of contraceptives.
Considering that the retirement age that will apply to the decrees is, according to the current legislation, 63 years for women and 65 years for men, it appears that approximately 1.8 million Romanians will retire, at the age limit, in the first 5-6 years after 2030.
Very likely, the employee/pensioner ratio will change radically, considering that the number of newly retired people after 2030 represents a little more than a third of the current number.
Concretely, there are currently approximately six million employees, who pay contributions transferred to the pensions of 5.3 million pensioners, resulting in an employee/pensioner ratio of 10/9.
Regardless of what the death rate and the birth rate will be in the next 12 years, the approximately 1.8 million Romanians who will retire after 2030 will radically change this ratio.
What additional benefits do pensioners receive in January 2023
The benefits that Romanian pensioners receive, from January 1, 2023by category:
1. For those who have pensions up to 1500 lei, the aid is 1000 lei, but it is divided into two installments, one in January and one in October
2. For those with a pension between 1,500 – 2,500 lei, the aid is 800 lei, i.e. 400 lei in January and 400 lei in October.
3. For those with a pension between 2,500 and 3,000 lei, the aid will be 600 lei, money divided in January and October, 300 lei each.
When can I retire – is a question that interests many Romanians, whether they are still working and are about to retire, or have already retired, but early.
Now you can find out in less than a minute the date on which you can retire, whether it is early retirement, partial early retirement or retirement pension.
All you have to do is go to the website of the National Public Pension House, fill in your date of birth and gender, then find out your retirement date (see Explanations in the Photo Gallery above).
