Romania adopts US-style 401(k) pension savings accounts
President Nicușor Dan signed a law creating individual retirement accounts modeled on the U.S. 401(k), letting Romanians invest pension savings on the stock market.
President Nicușor Dan promulgated on Friday a bill that introduces a new pension-saving scheme based on the American 401(k) model. The law, approved by Parliament in September, creates Conturi de Economii și Investiții (CEI), also called individual retirement investment accounts, which can be opened by any Romanian resident earning taxable income. These accounts must be held with a Societate de servicii de investiții financiare (SSIF) regulated under the 2018 financial markets law.
Opening and funding the accounts are optional, and the legislation proposes tax benefits to motivate long-term contributions. The measure aims to give citizens greater control over their retirement funds and to stimulate participation in capital markets.
Why it matters
It gives Romanians a tax-advantaged way to save for retirement and boosts domestic investment.
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