Pillar III is the voluntary pension category in the Romanian system, sitting beside the mandatory public Pillar I and the mandatory private Pillar II. Unlike the first two, Pillar III is chosen and managed by you personally: you decide the fund, the monthly amount, and the moment of withdrawal. In exchange for the administrative effort, you receive an annual tax deduction and full control over your long-term strategy. This guide explains how it works, what is available in 2026 and how to pick a fund.
Figures here were checked on 17 June 2026 against ASF and ANAF filings and GEO 117/2010.
Quick answer
Pillar III is the voluntary pension system, optional and contribution-based. Contributions are tax-deductible up to 400 EUR per year for the employee plus 400 EUR per year for the employer. There are 11 active funds authorised by ASF as of 17 June 2026. Profiles range from conservative (over 80% bonds) to dynamic (over 50% stocks). Average 5-year net returns 2020-2025: 4.8% moderate, 6.2% dynamic, 3.9% conservative.
How it works
You or your employer contribute monthly to the Pillar III fund you have chosen. The money flows into a personal account in your name at that fund, which is administered by a pension company authorised by ASF (the Financial Supervisory Authority). The fund invests the money in a portfolio of bonds, stocks, deposits and other instruments according to its declared policy. Returns are reinvested in your account.
At retirement age (or in the legally permitted exceptional cases), the accumulated sum is converted into a monthly payment or lump sum, depending on your choice. The usual monthly payment lasts 20 years, calculated against average life expectancy at retirement.
The tax deduction, a concrete benefit
Per Fiscal Code article 78, Pillar III contributions are deductible from annual gross income up to 400 EUR for the employee and 400 EUR separately for the employer. At the 2026 average BNR exchange rate (5.03 lei/EUR), the annual deduction threshold is 2,012 lei for each side.
Example for an employee with 78,450 lei annual gross income (6,538 lei monthly). Pillar III contribution: 2,012 lei per year (180 lei monthly). Deduction: 201 lei in tax saved (10% on 2,012). On top of that, the 2,012 lei plus returns continues to grow in the account. Direct fiscal saving: 201 lei per year. Over 25 years of steady contributions until retirement: 5,025 lei in direct tax savings plus the compounded fund balance.
The 11 active funds as of June 2026
Official ASF list, with approximate profiles and 5-year net returns 2020-2025.
| Fund | Profile | 5-year net return |
|---|---|---|
| BCR Plus | Moderate | 5.1% |
| BRD Pensii | Moderate | 4.8% |
| NN Activ | Dynamic | 6.4% |
| NN Optim | Moderate | 5.0% |
| Allianz-Țiriac Pensii Private | Moderate | 4.7% |
| Generali Stabil | Conservative | 3.9% |
| Generali Pensii | Moderate | 4.9% |
| Aegon Esențial | Moderate | 4.6% |
| BT Activ | Dynamic | 6.1% |
| Carpathia Premium | Dynamic | 6.3% |
| Carpathia Stabil | Conservative | 4.1% |
Past returns do not guarantee future results. The gaps between funds reflect different investment strategies and administrative costs.
Selection criteria
Horizon over 15 years
Dynamic profiles (Carpathia Premium, NN Activ, BT Activ) carry higher stock exposure, which maximises expected return on long horizons in exchange for sharper annual swings.
Horizon 5-15 years
Moderate profiles (BCR Plus, NN Optim, BRD Pensii) balance risk and return, with annual volatility around 8-12%.
Horizon under 5 years
Conservative profiles (Generali Stabil, Carpathia Stabil) protect capital with modest returns and low short-term loss risk.
Case study: Mariana, Galați, February 2026
Maria Popescu, former Ziarul Financiar journalist: "A reader, Mariana, 38, an accountant at a pharmaceutical firm in Galați earning 6,200 lei net per month, wrote to me in February 2026 after deciding to open a Pillar III contribution. Her plan: 168 lei monthly at BT Activ (dynamic profile), with a 24-year horizon until age 62."
"The math over 2026-2050 at an estimated historical 6.1% net return: total contributed 48,384 lei, plus roughly 60,890 lei in cumulative returns, for a total balance of 109,270 lei. Add the annual 201 lei tax deduction times 24 years and you get another 4,824 lei saved directly. Converted into a 20-year monthly payment, that balance generates 542 lei per month on top of her estimated public pension. The takeaway for readers: small, consistent contributions over long horizons compound into real money. 168 lei a month is less than a typical subscription, yet over 24 years it turns into 542 lei monthly supplementary pension."
How to open a Pillar III account
The process in four steps.
Step 1, fund comparison: on the fund websites or at asfromania.ro you can see profiles and historical returns.
Step 2, contract: download the form from your chosen fund, fill in your personal details, the bank account for debits and the monthly contribution amount.
Step 3, monthly debit authorisation: sign the SEPA mandate for automatic monthly withdrawal on a fixed date.
Step 4, ANAF reporting: when filing your annual tax return, check the Pillar III contributions box and the deduction is applied automatically. For salaried workers, the employer can apply the deduction on your monthly payslip if you notify them.
Frequently asked questions
Can I contribute several times a year? Yes, contributions are flexible. Many Romanians top up at moments of surplus (bonus, dividends) in addition to the monthly debit.
What happens if I change employers? Nothing. The Pillar III account stays yours regardless of any job change. Only the previous employer's separate contributions stop, if there were any.
Can Pillar III be inherited? Yes. The balance in your Pillar III account enters the estate per the inheritance certificate.
What is the difference between Pillar II and Pillar III? Pillar II is mandatory, with an automatic 4.75% gross salary contribution and a fund picked from a short list. Pillar III is voluntary, with optional contributions and an extra tax deduction.
At what age should I start? As early as possible. Thanks to compounding, a contribution started at 25 generates two to three times more at retirement than the same contribution started at 40, even though the total deposited is much smaller.
Related
• Pension calculator
• Pillar II, verifying your investment
• Compound interest
• How the pension calculator works
Maria's note: "Pillar III is the instrument Romanians use the least for supplementary pension, even though it offers a direct tax deduction and full control over strategy. For salaried workers under 50, even 100-200 lei per month is the simple act that over 20-30 years shifts the retirement replacement rate by 5 to 10 percentage points. The general recommendation is to start as early as possible and automate the monthly debit."