Spanish pension funds’ assets decreased by €2.7bn in the third quarter of 2023, falling to €117.4bn at the end of September, according to data from Inverco.

Inverco noted that the reduction was due to both the adjustment of valuations experienced in the market’s financial results in Q3 and the level of benefit payouts during the quarter.

Despite the decline in Q3, Spanish pension funds’ assets have increased by €3.44bn over the first nine months of 2023.

On a year-on-year basis, the one-year return continued to improve from the lows seen in December 2022, and stood at 5.2 per cent at the end of Q3 2023.

In the long term, the return remained positive, with an average annual return of 2.6 per cent over 26 years.

Pension funds’ average annual returns in the medium term (10 and 15 years) were 2.6 per cent and 2.9 per cent respectively.

In the first three quarters of the year, there was a 9 per cent reduction in the value of gross contributions in the individual pension system compared to the previous year.

Contributions to the induvial pension system in Spain amounted to €1bn during this period.

Meanwhile, gross contributions to employment pension funds in the first three quarters of the year remained the same as the same period in 2022 at €767bn.

Overall, pension net benefit payouts increased from €810m in Q1-Q3 2022 to €1.08bn in Q1-Q3 2023.

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