For many Romanians, the question of what their pension will look like after two decades of work is both pressing and perplexing. The answer, it turns out, is rooted in a complex formula that takes into account not just the number of years worked, but also how individual earnings stack up against the national average, the timing of those earnings, and even recent legislative changes. As reported by Bugetul and other local sources in September 2025, understanding this system is essential for anyone hoping to plan a financially secure retirement.
At the core of Romania’s public pension system is a points-based calculation. Every year, workers accumulate points reflecting the ratio between their monthly income and the national average salary. If someone’s salary matches the average, they earn one point per month—twelve points per year. Over twenty years, a worker earning the average salary would accumulate twenty points in total. The pension amount is then determined by multiplying the total points by the value of a pension point, which, as of September 1, 2024, is set at 81 lei.
So, what does this mean in practical terms? According to Bugetul, a person with twenty years of work at the average salary level would receive a pension of approximately 1,620 lei per month (20 points x 81 lei). For those whose earnings fell below the national average, the monthly pension would be lower, while those who consistently earned more than the average would see a higher pension as a result.
But the calculation isn’t quite as straightforward as it may first appear. Specialists caution that the example above is a simplification. In reality, the number of points earned can vary from year to year, depending on salary fluctuations, periods of study, sick leave, or other assimilated periods. Legislative changes can also impact the calculation. For this reason, the National House of Public Pensions (Casa Națională de Pensii Publice, or CNPP) offers contributors a detailed points statement, allowing individuals to check their own records and get a clearer sense of their future pension. As a rule of thumb, after two decades of work at the average salary, the estimated pension hovers between 1,600 and 1,620 lei per month.
“The pension amount is determined by multiplying the total number of points accumulated by the insured over their entire working life by the reference point value established by law. As of September 1, 2024, the reference point value is 81 lei,” the CNPP confirmed in an official statement cited by Bugetul.
Romanians are encouraged to calculate their pension months or even years ahead of retirement. Why? Because a timely and accurate understanding of the rules can make a substantial difference in later years. According to Bugetul, there are four essential elements that shape the final pension value: monthly points, annual points, stability points, and the total points realized throughout an individual’s career.
The rules for calculating these points have evolved over time. For periods before April 1, 2001, the calculation is based on the total monthly income (gross or net) on which social security contributions were paid. For the period between April 1, 2001, and August 31, 2023, the gross monthly income used as the basis for individual social insurance contributions is applied. After the recalculation that took effect on September 1, 2024, the calculation method shifted again: now, the monthly points are determined by relating the gross monthly income—or insured monthly income—to the gross average salary used for the social insurance budget in that year.
Annual points are calculated by dividing the sum of monthly points for a given year by twelve. This approach helps smooth out any fluctuations in income over the course of the year, providing a more accurate reflection of a worker’s contributions.
One of the most significant recent changes to Romania’s pension system is the introduction of “stability points.” These are bonus points awarded to those who have contributed to the system for more than 25 years, designed to reward long-term contributors. The breakdown is as follows: for each year worked beyond 25 years and up to 30 years, 0.5 stability points are awarded; for each year between 30 and 35 years, the bonus increases to 0.75 points per year; and for those with more than 35 years of contributions, a full point is added for each additional year. There are also proportional values for additional months and even days worked beyond these thresholds.
However, for those with only twenty years of work experience, these stability points do not apply. As Bugetul underscores, the “stability points” bonus is only available to those who exceed 25 years of contributions, meaning that workers with shorter careers will not benefit from these additional points.
The total number of points, then, is the sum of all annual points and any stability points earned. This total is multiplied by the reference point value to arrive at the final pension amount. The CNPP’s official guidance is clear: “The total number of points realized by the insured is obtained by summing the annual points and the number of stability points.”
For those eager to maximize their future pension, the message from pension experts is consistent: check your points regularly, understand how your salary compares to the national average, and be aware of how legislative changes might affect your calculations. The CNPP provides an accessible points statement to all contributors, which can be a vital tool for financial planning.
It’s also worth noting that periods of study, medical leave, or other assimilated intervals can influence the total number of points. While these periods may not contribute as much as full-time employment, they are still factored into the calculation, albeit sometimes at a reduced rate or under different rules. Legislative changes can also alter how these periods are treated, so staying informed is crucial.
For Romanians looking ahead to retirement, the system can seem daunting. But with the right information and a proactive approach, it’s possible to get a realistic estimate of what the future holds. The bottom line? After twenty years of work at the average salary, the current system promises a pension of around 1,600 to 1,620 lei per month. Those who work longer or earn more can expect higher payouts, especially if they cross the 25-year threshold and start accruing stability points.
As the pension landscape continues to evolve, staying informed and checking one’s personal points record remains the best strategy for ensuring a comfortable retirement. While no system is perfect, Romania’s approach rewards consistency, transparency, and long-term planning—qualities that anyone, regardless of income, can strive to achieve.
