BUCHAREST, Jan 14 Reuters Assets held by Romania39;s seven mandatory private pension funds jumped 19 on the year to 150.85 billion lei 31.15 billion in 2024, with the average yield at 5.74, slightly above the 5.1 annual inflation rate, the industry association said on Tuesday.

The European Union member state overhauled its communistera pension system in 2008, making it compulsory for working Romanians under 35 to contribute to a second pillar of private pension schemes as well as their state pension.

Roughly 8.3 million Romanians contribute to the seven funds, which are the largest institutional investors on the Bucharest Stock Exchange.

The industry association said four scheduled elections in 2024 brought high volatility to fund yields.

Three consecutive ballots to elect a new president and parliament in the European Union and NATO state descended into chaos when a littleknown farright proRussian politician won the first presidential round on Nov. 24. Amid suspicions of Russian interference, the top court annulled the election in December. The ballot will be rerun in May.

Romanians will increasingly rely on private pensions, particularly after 2030 when just under 2 million people a tenth of the population born under a communistera abortion ban will reach retirement age, a destabilising increase to the payasyougo state pension system.

1 4.8423 lei

Reporting by Luiza Ilie Editing by Bernadette Baum

Source Reuters