How many years of pension does a Romanian who has contributed for 35 years enjoy? Life expectancy influences

Romania has the third lowest life expectancy in the EU, at 76.6 years, according to Eurostat.

Romania is followed in this ranking only by Latvia, with 75.9 years and Bulgaria, with 75.8 years. Spain is the country in the European Union (EU) with the highest life expectancy, at 84 years, and it is above the Community average, which is 81.5 years. The standard retirement age is 65 in Romania.

How many years of pension does a Romanian who has contributed for 35 years enjoy? Life expectancy influences

In order to receive the minimum pension, a Romanian must contribute for 15 years. Currently, the minimum pension is 1,281 lei, writes Antena3.

The full contribution period is 35 years. From a minimum salary, 25% of the money goes to the pension fund. This means that the state withholds 775 lei every month.

Read also: How can you retire at only 60 years old, according to the new pension law? How many years do I have to contribute?

From an average salary, the state withholds approximately 2,000 lei every month. Currently, the minimum pension is 1,281 lei, and the average pension is 2,125 lei. Analysts estimate that Romanians end up receiving not even half of what they contributed after they retire.

“The paradox is that, when they enter the retirement period, the average benefits granted to a Romanian citizen represent only 40%-50% of the income they previously obtained”, say the specialists.

How much we contribute to pensions month by month

RETIREMENT AGE: 65 YEARS

• full contribution period: 35 years
• minimum internship: 15 years
• minimum salary: 3,300 lei gross
• pension contribution: 775 lei
• average salary: 7,990 lei gross
• pension contribution: 1,998 lei
• minimum pension: 1,281 lei
• average pension: 2,125 lei

Men can retire 5 years earlier, and women more than 3 years without being penalized in any way. On the contrary, they will take a substantial pension.

How can women retire 3 years earlier and men 5 years earlier? What pension will they have?

In the case of men, they will have many stability or bonus points. They must have worked for at least 40 years to be able to retire early.

Read also: The pension law, adopted. What are the most important changes? How much are pensions increasing?

And women can retire 3 years earlier without being penalized. This, because for each child the retirement age is reduced by 6 months. In addition, the maternity leave period is considered a contributory period.

How do men retire earlier?

The law says very clearly in article 58:

Art.58 – (1) Anticipated pension is due, at most 5 years before reaching the standard retirement age, to people who have completed up to 5 years of contribution period over the full contributory contribution period provided for in annex no. 5, as well as those who completed the full contributory contribution period provided for in annex no. 5.

(2) When determining the full period of contributory contributions required to grant the early pension, the periods in which the person was insured based on an insurance contract concluded, starting from January 1, 2018, are not taken into account.

If they have worked for 40 years, men can retire at 60.

In this case they receive a large number of stability or bonus points:

Read also: How can women retire faster? The retirement age was reduced under certain conditions

5X0.5 + 5X0.75+ 6X1 = 11.25 stability points.

Total points = contribution points + stability points.

The total points are multiplied by the value of the reference point, which is 81 lei, and the result is the recalculated pension.

How do women retire earlier?

For each child born, women benefit from a reduction of the retirement age by 6 months. Mothers who have given birth to several children benefit from a reduction of the retirement age by up to 3 and a half years.

the maximum reduction is 3 years and 6 months.