Some €3bn withdrawn from pension plans in Spain since 2009

Eugenia Jiménez
Some €3bn withdrawn from pension plans in Spain since 2009

Some 617.230 holders of pension funds have withdrawn €3.26bn from their pension plans in Spain since 2009, an amount accounting for 2.9% of the total assets of these investment products, which gathered up to €111bn as of the end of 2017.

The withdrawal follows the pension funds reform approved by the Spanish government in 2009, which enabled long-term unemployees and people with serious illness to rescue their savings from pension funds in advance to tackle their financial issues arising from unemployment.

According to the Spanish asset management industry body Inverco, some €355m were rescued in 2017, which were distributed among 44.000 unemployed participants. The figure is down by 3.7% year-on-year, following the downward trend started in 2014, when €417m were withdrawn, down 7% year-on-year in relation to the €250m registered in 2013.

As for serious illness, €278m have been rescued from pension funds since 2009.

Spain’s prime minister Mariano Rajoy announced on 9 February 2018 the approval of a reform that would enable savers to withdraw all or part of their money invested in pension plans after ten years of contribution, without needing to wait until retirement, nor to be under any exceptional circumstance like long-term unemployment or serious illness.