Spanish pension funds’ assets increased by €1.27bn in the second quarter of 2024, rising to €127.4bn at the end of June, according to the latest figures from Inverco.

Inverco stated that the growth was driven by the positive performance of investments in Q2 2024.

During the first half of 2024, Spanish pension funds experienced an increase in asset volumes of €5bn.

In the individual pension system, assets rose by 4.9 per cent to €89.1bn in H1 2024, while assets in the employment pension system increased by 2.3 per cent to €37.5bn.

Year-on-year to the end of June, pension funds from across the different pension systems returned 9 per cent.

In the long term, the return remained positive, with an average annual return of 2.5 per cent over 26 years.

Pension funds’ average annual returns in the medium term (10 and 15 years) were 3 per cent and 4 per cent respectively.

In the second quarter of 2024, there was a 0.4 per cent increase 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 €337m during this period.

Meanwhile, gross contributions to employment pension funds in H1 2024 rose by 5.9 per cent year-on-year to €305m.

Overall, pension net benefit payouts stood at €917m in the second quarter of 2024.

---