Pension system under increasing pressure: contributions cover only 73% of expenditure

Romania's public pension system is placing ever-increasing pressure on the country's budget deficit, according to the latest data from the Fiscal Council's report. Revenue collected from contributions currently covers only 73% of pension expenditure, with the remaining quarter being met from other budgetary sources.

According to the same data, the cumulative deficit of the social insurance budgets has grown in 2025 and now accounts for approximately 30% of the country's total deficit. By comparison, in 2024 this figure stood at around 20%.

Economists call for urgent measures

The growing pressure on the system comes in the context of the imminent retirement of the large "decree generation" cohort. Economists are warning that urgent measures are needed to enable the system to cope with this wave of retirements.

In an interview on Digi24, Prime Minister Ilie Bolojan's adviser discussed the need for urgent action, including the possibility of raising the retirement age.

Retirement age could be increased in stages

Such a scenario could be implemented gradually. In a first phase, the increase in retirement age would target special categories who currently retire earlier – police officers, military personnel, and magistrates. The measure could subsequently be extended to other sections of the population.

One example cited is that of France, which has already raised its minimum retirement age.

Another avenue under discussion to support the system is increasing the number of people in employment, particularly by bringing as many young people as possible into the labour market, who could contribute to financing the pensions of the generation about to retire.