Gross annual contributions to the individual pension system in Spain fell by 32 per cent in 2022 to €1,709m, according to data from Inverco.

This decline was primarily driven by the reduction of the maximum contribution limit to individual pension schemes in Spain, which was reduced from €2,000 a year to €1,500.

The 2022 reduction follows the reduction imposed in 2021, which decreased the maximum contribution limit from €8,000 to €2,000.

Due to the limitations in both years, Spanish retirement savings have decreased by €4,380m over the past two years, according to calculations measured against the gross contributions in 2020.

As a consequence of this, and for the second consecutive year, the net contributions to the individual system were -€667m at the end of 2022.

The estimated cumulative volume to individual schemes at the end of December was €1,709m, compared to €2,376m of gross benefits.

Meanwhile, the corrections in market prices, in both variable and fixed income, resulted in a fall in the accumulated assets of individual pension plans.

In December 2022, the value of assets in the individual pension system was €80,234m, which was €2,185m less than the previous month.

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