More than half of Romanians, 58% to be precise, have no faith in state help when it comes to providing them with financial support at the age of retirement.
More than half of Romanians, 58% to be precise, have no faith in state help when it comes to providing them with financial support at the age of retirement.
This is the finding of the survey carried out by Henley Centre Headlight Vision together with Aviva plc for the year 2009. The Romanians’ lack of faith in the state pensions system is greater than that of all other Europeans. Despite the fact that 82% of respondents think that it is the duty of the state to provide for a decent living in retirement, this is viewed with suspicion by the great majority of the population.
The greatest sceptics are those living in the Ardeal and Banat-Crişana-Maramureş areas, with 65% and 67% respectively maintaining with absolute certainty that the state will not cover their day-to-day expenses in retirement, whereas Bucharest residents are the most trusting, with only 35% of them stating the same thing.
According to the survey, despite the fact that 63% of Romanians are of the view that they will not have enough money when they retire, the number of them who take appropriate action is very small. At present, only 27% of the population make use of financial services to save money in order to improve their standard of living in retirement.
The current situation forces them to consider the possibility of carrying on working after the normal retirement age, with 61% taking this into account, and what is surprising about this is the fact that 69% of these people are aged between 25 and 34.
At present, of those people who are approaching retirement age, only 27% will enjoy a better living, with these people considering that the state-provided pension will be more than enough.
“If we take into account the average lifespan of an adult in Romania, 70% of this time is spent working, and 30% corresponds to the period of retirement. In order to ensure that we enjoy the same standard of living in retirement as we do in our working lives, we need to save approximately 30% of our current salary.
"Unquestionably this is not easy for the majority of Romanians, but what we have to realise is that the 2% coming from the mandatory private pension (even at a maximum of 6%), added to the state-provided pension – as a basic level for retirement – will not add up to the 30% needed for a high standard of living in retirement. And this can be achieved either by paying into a voluntary pension or a life insurance policy with a long-term savings component,” stated Shah Rouf, CEO of Aviva Romania.
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For further information:
Lavinia Pavel – Brand Communication Coordinator
Telephone: 0723 310 378
E-mail: lavinia.pavel@aviva.ro
Notes for editors:
- None of the findings of the Aviva survey may be reproduced without acknowledging the source: Aviva Life Insurance.
- The Consumer Attitudes to Savings survey was undertaken in 2004 in 11 countries, in 2005 in 16 countries, in 21 countries in 2006 and in 2008 in 25 countries. Starting in 2006, Romania was included in the survey. The countries in which the research was carried out in 2008 are: Romania, France, Ireland, Lithuania, Spain, Hungary, the Czech Republic, Italy, Poland, Russia, Turkey.
About the Aviva group
Aviva is the oldest insurance group in the world and the largest in Great Britain, dating back to 1696.
Today, Aviva has 54,000 employees and 50 million customers in 28 countries across the world.
The group is the market leader for life insurance and pensions in Europe, leading on the majority of the markets in which it operates.
Aviva has revenue from insurance premiums* and investments of €51.4 billion and manages over £381 billion worth of funds**, putting Aviva in fifth place in the top flight of international insurance companies.
Aviva Group Romania
Aviva Group Romania includes three companies: Aviva Life Insurance, Aviva Management Company for a Private Pension Fund, Aviva Investors Romania (purchased on 13 September 2007).
About Aviva Life Insurance and Aviva Management Company for a Private Pension Fund
Aviva began operating as a provider of life insurance in Romania in 2000, currently holding a portfolio of over 1,100,000 customers. On 26 July 2007, Aviva received approval from the Oversight Committee for the System of Private Pensions to set up a company to administer private pensions (Aviva Management Company for a Private Pension Fund SA), and on 25 August 2007 received authorisation to administer its mandatory pension fund – Pensia Viva.
About Aviva Investors Romania
Aviva Investors Romania currently administers €15 million in four mutual funds, each based around a different type of investment: Aviva Investors (AI) Intercapital (a shares fund), AI Capital Plus (a diversified fund), AI Orizont (a fixed-income – bonds – fund) and AI Tezaur (a monetary fund). Aviva Investors Romania also administers individual investment accounts.
Aviva Investors Romania has shown throughout the years that it is one of the most dynamic and innovative administrators in the market. The company launched the first commission-free sales fund on the Romanian market (AI Tezaur) and the first bonds fund in Romania (AI Orizont). Aviva Investors Romania is also proud to support the growing investment funds market in Romania.
* according to data of 31 December 2008
** according to data recorded on 30 June 2008