Spain's Inverco encourages SMEs to join the UK corporate pension funds model

Eugenia Jiménez
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Spanish asset management industry body Inverco has called Spanish SMEs to hire pension schemes for their employees in order to supplement the income they may receive from state pensions when they retire.

The claim – aimed at ensuring workers that the pension received when they retire is as similar as possible to their last salary – comes amid the recent reform approved by the Spanish government on private pension funds, consisting of allowing workers to rescue their money from ten years later having deposited it.

Although Inverco has welcomed the reform, has also encouraged the Spanish government to take into account the pension system operating in the UK, in which the British Government established a semi-compulsory model urging companies to offer corporate pension schemes to their employees.

UK-based companies, regardless their size, must subscribe to that private pension scheme while paying contributions to their workers, who have the option to decide whether they want to take it or not. “Only 7% of employees in the UK have rejected corporate pension plans to the date, leading to a 12% rise in the money poured into those savings products,” said chairman of Inverco Ángel Martínez Aldama.

In Spain only employees of larger companies have access to corporate pension schemes which, according Inverco, might serve as a supplement to state pensions, whose sustainability remain consistently questioned.

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