Spanish pension funds’ assets increased by €1.66bn in the second quarter of 2023, reaching €120.1bn at the end of June, according to data from Inverco.

Inverco stated that the improvement in asset levels was primarily driven by positive movements in financial markets during the quarter.

On a year-on-year basis, the one-year return continued to improve from the lows seen in December 2022, and stood at 3.8 per cent at the end of Q2 2023.

In the long term, the return remained positive, with an average annual return of 2.7 per cent over 26 years.

Pension funds’ average annual returns in the medium term (10 and 15 years) was 3 per cent and 2.8 per cent respectively.

In the second quarter of 2023, there was a 9.3 per cent reduction in the value of gross contributions in the individual pension system compared to Q2 2022, falling by €34.5m.

Contributions to the induvial pension system in Spain amounted to €336m in Q2 2023.

Meanwhile, gross contributions to employment pension funds declined by 2.7 per cent compared to Q2 2022.

Gross payouts increased by €42m compared to the second quarter of 2022, with the majority of this rise being in the employment system.

Combining contributions and benefits, net benefits increased by €84m year-on-year in the second quarter of 2023.

Overall, pension funds had net benefits of €751m in 2023 so far.

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