Spanish pension funds’ assets increased by €2.8bn in the first quarter of 2023, reaching €118.5bn at the end of March, according to data from Inverco.

Inverco explained 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 Q1 2023.

In the long term, the return remained positive, with an average annual return of 2.9 per cent over 26 years.

Pension funds’ average annual returns in the medium term (10 and 15 years) was 2.8 per cent and 2.5 per cent respectively.

In the first quarter of 2023, there was a 12 per cent reduction in the value of gross contributions in the individual pension system, falling by €46.5m.

Meanwhile, gross contributions to employment pension funds declined by 15 per cent compared to Q1 2022.

Gross payouts also fell compared to March 2022, by €41m, with the majority of this reduction being in the individual system.

Combining contributions and benefits, net benefits increased by 6 per cent, or €44m, year-on-year in the first quarter of 2023.

Overall, pension funds had net payouts of €487m in Q1 2023.

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