Romanians will be able to save money for retirement under the American system, tax-free

Romania has had for several weeks a law regulating a new form of pension savings, linked to shares and bonds listed on the Bucharest Stock Exchange (BVB) and carrying tax benefits. This concerns the savings and investment account, introduced in Romania through an initiative by several PNL and USR parliamentarians and supported by a broad majority from the other parties as well.

Romanians will be able to invest personally in bonds and shares listed on the BVB in order to build their own resources for retirement. This will happen after the new system of savings and investment accounts becomes operational. It is a system already adopted by law in Romania and taken from more developed countries, primarily the United States, where it is widespread. The main features of the new account are that the individual has direct control over their investments (not through administrators, as in the Pillar II or Pillar III private pension system) and that the returns obtained from these investments are tax-exempt.