Spanish individual pension system assets decline in April

The volume of assets in the individual pension scheme system in Spain declined by 1.1 per cent in April 2024, according to the latest figures from Inverco.

Inverco revealed that assets fell by €1.1bn to €87.1bn during the month.

Despite the decrease in April, assets in the individual pension scheme system grew by 2.6 per cent (€2.18bn) over the first four months of 2024.

Compared to April 2023, individual pension assets increased by 7.62 per cent (€6.17bn).

The year-on-year returns of the pension schemes fell slightly in April to approximately 9 per cent due to an adjustment in market valuations, Inverco noted.

Variable income assets, such as equities, continued to deliver a strong investment performance, offering an annual return of 19 per cent.

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

For example, at 20 years, pension schemes were expected to register an average annual return of 2.9 per cent.

Meanwhile, in the medium term of 10 and 15 years, pension schemes were forecast to return 2.8 per cent and 3.8 per cent respectively.

During March 2024, the estimated value of contributions to the individual pension system was €116m, while the value of benefits was €219m.

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