Monday, January 17

Funding for pension plans drops 12 million, punished by the tax hack

The appetite of savers for pension plans decreases month by month, which translates into a decrease in net deposits, which in October reached 50 million euros, 12 million less than in the same month of 2020.

This decrease is due to the fact that investors are allocating part of the savings that previously directed to pension plans to other products such as investment funds, after the cuts in tax incentives made by the Government.

Jose Luis Escrivá, Minister of Social Security, decided in 2020 to reduce the limit of contributions to individual plans with the right to personal income tax relief from 8,000 to 2,000 euros, which resulted in a 75 percent decrease.

In addition, the budgets for 2022 include another reduction of these limits from 2,000 to 1,500 euros. Which has meant a total cut in the limits of 6,500 euros in two years.

Decreases that harm 7.5 million participants in individual pension plans and almost one million savers in insured pension plans (PPA).

Portfolio performance drives equity

The assets under management of the individual system pension plans increased by 1.52 percent in October, 1,238 million more than the previous month, which places the total managed at 82,580 million.

This increase was mainly motivated by the positive performance of the portfolios amounting to 1,238 million.

The bank, leader in deposits and in quota

Banks were the entities that registered the highest net deposits, with 16 million, followed by cooperative credit societies and insurance companies, with 15 and 9 million respectively.

In percentage terms, it was the independent groups that had the greatest increase in equity, with 2.52 percent, ahead of insurance companies, with 1.91 percent.

Banks are also the ones with the largest market share, with 79.96 percent, followed by independent and international groups, with 6.45 and 4.76 percent respectively.

Sabadell, the one that attracts the most capital

Banco Sabadell was the financial group with the largest deposits, 14 million euros, followed by BBVA and Ibercaja, with 11 and 9 million respectively.

While Caixabank remains leader by equity managed, with 26,155 million and a market share of 31.67 percent, followed by BBVA, with 15,051 million and a share of 18.23 percent, and Santander, with 13.28 percent.

Mixed plans, preferred by participants

By asset category, pension plans mixed are those that achieved the highest net deposits, with 124 million, followed by equities, with 51 million.

On the contrary, fixed income were those that suffered the highest net repayments, with 81 million.

In this way, mixed maintain their preponderance in the Spanish market, with 53,062 million, and a market share of 62.45 percent, followed by variable income, with 14,165 million.

GCO Gestora, the most profitable

In terms of profitability, GCO Pension Manager it was the most profitable in October, with returns of 3.29 percent, followed by Bankinter Seguros de Vida and Vidacaixa, with 2.75 and 2.49 percent respectively.

Among the independent managers, he highlighted Abante Pensions, with a weighted average profitability of 3.75 percent, followed by Trea Pensiones and Renta 4 Pensiones, with 3.49 and 3.20 percent.