Individual pension plans aligned with sustainability criteria, that is, with article eight or nine of the Sustainable Finance Disclosure Regulation (SFDR), exceeded 29.2 billion euros at the end of last year, representing 36.2 % of assets managed through pension plans, according to data provided today by the employers’ association Inverco and collected by Europa Press.
Of these, the pension plans that promote environmental and social characteristics (article 8) accumulated 27,658 million euros, a figure that represents 34.1% of the total plans of the individual system. The 1,630 million euros, 2% of the total, are funds with a sustainable investment objective, included in article 9. At the end of the year, there were almost 2.7 million saver accounts in one of these sustainable pension plans, which which represents 35.8% of all participants in the individual pension plan system.
January closing of pension plans
On February 15, Inverco also reported that the pension plans ended January with an average annual return of 3% and contributed more than 2,200 million euros to their participants. Regarding the volume of assets of the pension plans of the individual system, it stood at 82,526 million euros, 2,292 million euros more than the end of 2022.
As Inverco explained, in the same way, in the long term, that is, at 26 years, the profitability of the pension plans also achieved an average annual return of 2.5%, in the case of pension plans to 26 years and 2.2% in those of 25 years, while in those of 20 years it reaches 2.8%.
Likewise, fifteen-year pension plans registered an average annual return of 2.0% in January; those of 10 years, 2.7%; those of five years, 0.9%; and those of three years, 0.4%; while in the case of one-year ones it was -5.6%. Inverco specified then that the estimated volume of gross contributions to the pension plans of the individual system reached 128 million euros, while the benefits reached 116 million euros.
The Association of Collective Investment Institutions and Pension Funds has recorded that a sample of 860 Individual System Pension Plans and 7.37 million participant accounts are included in the preparation of this statistic.
