Spain & Portugal Investment and Pensions

Spain: Reforms passed in 2022 introduced a simplified multi-employer pension scheme (PPES), which can be used by the self-employed, as well as so-called public-promoted pension plans (FPEPPs). Take-up has been limited though – in part attributed to a 40bps cost cap. There were 50 PPESs managing €952m by end-June 2026, with 1.2 million participants, but this equates to a very low account balance of just €810 per saver. The fund association INVERCO points to an increase in PPEP accounts in the first half of 2026 of over 88,000. VidaCaixa runs a PPES for the construction sector, which accounts for most of the activity in the sector – with over just under €240m in assets and 725,000 enrolled members by end-November 2025. Some 3.3 million Spanish workers are enrolled in workplace pensions overall. Total pension assets reached €42bn as of end-June 2026, with 10.6 million accounts. FEPPs do not appear to have got off the ground, although the government has identified five providers – Caser, BBVA, Ibercaja, Santander and VidaCaixa – which have reportedly set up 15 schemes between them. 

Portugal: Portuguese pension assets amounted to just under €20bn as of end-March 2026, according to ASF, the insurance and pensions supervisor. Average annual returns to end-September 2025 for the country’s 238 funds were a meagre 2.3% and total assets barely moved over the previous 12-month period, registering just a 1% increase. This is unsurprising given the conservative asset allocation profile, with 47% in fixed income on average. The regulator reported successful IORP stress tests, however, with sufficient liquidity and shock absorbent capacity among domestic Portuguese funds.