Fiscal Council warns: Contributions Cover Only 73% of Pension Expenditures, While the System’s Deficit Is Growing

Romania’s public pension system is placing increasing pressure on the country’s deficit, after contribution revenues covered only 73% of pension expenditures, according to the latest data presented in the Fiscal Council’s report. As a result, approximately one-quarter of the system’s expenditures is financed from other budgetary sources.

The cumulative deficit of the social security budgets increased in 2025, accounting for approximately 30% of the country’s total deficit, compared with around 20% in 2024. This development is intensifying concerns about the system’s sustainability, as the large generation of those born during the communist-era decree is approaching retirement.

Economists warn that urgent measures are needed for the system to cope with the growing number of pensioners. The scenarios under discussion include gradually raising the retirement age, initially for special categories such as police officers, military personnel and magistrates, who currently retire earlier. Subsequently, the measure could be extended to the entire population.

Another solution is to increase employment, so that more young people contribute to financing pensions. The authorities are examining these options amid mounting demographic and budgetary pressures.