The volume of assets in the individual pension system in Spain decreased by €512m to €84.4bn in August 2023, according to data from Inverco.

Inverco noted that “significant volatility” in the financial markets led to a valuation adjustment in the portfolios, resulting in a slight reduction in the asset value of equity investments in the long term.

Asset volumes had been steadily increasing since February, rising from €82bn to €84.9bn between the end of February and the end of July, before August’s decline.

The returns in the medium to long term on schemes with a long-term time horizon remained positive, Inverco found.

For example, at 26 years, pension schemes are expected to register an average annual return of 2.4 per cent.

Meanwhile, in the medium term of 10 and 15 years, pension schemes were forecast to return 2.8 per cent and 2.5 per cent respectively.

During August, the estimated value of contributions to the individual pension system was €105m, while the value of benefits was €129m.

Inverco used 828 pension schemes in the individual pension system and 7.34 million members in its analysis.

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