Membership of Spanish pension funds has leapt up by almost 30% in the last year, according to a recent re-port by INVERCO, Spain's investment and pension funds association.

The increase from 2.3m to almost 3m members has pushed total assets in the funds up to around Pts4.1trn ($3.1bn), with private funds constituting Pts2.3trn, employment schemes weighing in at Pts1.6trn and association funds accounting for Pts0.1trn.

Angel Martinez at INVERCO believes the increased membership is mostly due to greater public expectation of reduction in Spain's social security provision. However, he adds: This rise in numbers and assets is very good, but pension funds still only cover 23% of the active population, so we have a long way to go before we see the kind of pensions system operating in the UK and the Netherlands."