Olguța Vasilescu: Pillar II Pensions Are "a Great Swindle", People Will Be in for a Shock

Lia Olguța Vasilescu, the mayor of Craiova, spoke about Second Pillar pensions on the programme Culisele Statului Paralel on Realitatea PLUS, describing them as "a complete rip-off". According to her, people expect to receive large sums when they retire, but the reality will be quite different, and the surprise will be an unpleasant one.

"In my view, Second Pillar pensions are a complete rip-off. People expect to receive a great deal of money when they retire, and that's simply not going to happen — they're in for a shock," Vasilescu stated.

She explained that current legislation only allows private pension fund managers to invest in certain sectors. However, they are now set to be given the option of investing in the defence industry as well — a direction Vasilescu does not necessarily view as negative, though she noted her doubts that any such investments would be directed towards Romania's own defence industry.

"This is precisely where things start to become a problem, because they will also be able to invest in other countries. And so, in a way, I understand the desperation, if you will, of the trade unions, who are coming forward and saying: 'We're going to lose even this pension money, little as it is' — money that could end up in poor investments, with weak returns, in companies that may go bankrupt. And the one who will ultimately lose out is the ordinary citizen," the mayor of Craiova added.