ALLIANZ TIRIAC Private Pensions builds long-term partnerships

Four months after the start of the marketing campaign for optional pensions, the so-called Pillar III, Alianz Tiriac is consolidating its leading position. Although in its initial stages, the private pension market is an accurate indicator of the romanians" appetite for saving within the framework of the new Romanian pension system. Moreover, it is also an idicator of the romanians" preference for one pension fund administrator or another.

Closely watching the market signals, Allianz Tiriac confirms the strategic option to create trustworthy partnerships with people deciding to entrust their pension life savings to this administrator. It is not by accident that Allianz Tiriac"s position as the leader on the optional pension market is already prefigured for the end of 2007, taking into consideration its actual 60% share of the market. Unlike other authorised administrators for this pillar, Allianz Tiriac strongly relied on communicating and explaining to every eligible individual the need for pension saving, starting with optional pensions. Although it was not the State"s best strategic idea to launch Pillar III before Pillar II - for compulsory pensions, AZT still managed to fructify the positive aspects of this situation.

The selling of optional pesions alongside the compulsory ones is every professional salesman"s choice. It is quite clear that none of the three pillars is able to independently ensure an individual"s expected income level, come retirement time. European stardards in this field show that a reasonable pension-income substitution rate should be over 80%. Taking into consideration the average pension, the current public pension system places Romania at 35%, a rate that will increase to 45% in the near future. As a consequence, the other two pension pillars have the mission of making up the 35 - 40% substitution rate difference. Considering the legal contribution limitation, Allianz Tiriac specialists estimate that Pillar II (compulsory pension) will be able to account for 10% of the desired difference, and Pillar III (optional pension) for the rest. It is thus only natural that the two pensions, compulsory and optional, be presented and "sold" as complementary products. This is also Allianz Tiriac"s strategy even since the beginning of the official selling campaigns. For the same reason, Allianz Tiriac is currently the only company that has chosen to manage the two different funds under the same administrating company.