not a good year retirement plans. These social welfare instruments experienced a 32% decrease in their gross contribution margin last year. 1,709 million compared to 2,529 million the previous year, according to the latest data from the employers’ association Inverco. Contributions to individual plans were -667 million euros, the second consecutive year negative, resulting in 1.709 million contributions and 2.376 million gross benefits.
This development, which represents a reduction of €4,380 million in two years due to resource outflows, to further benefit the sector from new fund inflows to feed assets. lowering the maximum deductible contribution limit personal income tax Individual plans implemented in 2022 (from 2,000 euros to 1,500 per year). This reduction in tax advantage joins the reduction from 8,000 euros per year to 2,000 euros per year implemented in 2021.
In previous years, development was increasing with a total gross contribution margin of 3,586 million in 2018; 4,090 million in 2019 and 4,314 million in 2020. In 2021, in response to the first phase of tax benefits for individual products, a first accident up to 2,539 million according to Inverco data on monthly development of individual plans.
collective plans
Made compatible with lowering limits on deductions. increase in contributions for retirement plans pensions related to Duty, those to which the company contributes. Until 2022, the exemption limit on company plans has been increased to 8,500 Euros per year.
To all this we must add the “important”. adjustments to market prices Both variable income (stock market) and fixed income (public and private debt) led to a decrease in the accumulated assets of private pension plans.
In December, the asset volume of individual system pension plans amounted to € 80,234 million, down by € 2,185 million compared to the previous month. In one-year plans, 2022 profitability was 10.1% and -0.8% in three years due to these corrections in the markets. In the long run, At 26 years old, this improvement is up to 2.5%. This statistic includes 861 Individual System Pension Plan samples and 7.40 million participant accounts.
According to Inverco’s data, the employment system did not increase the gross contribution margins in the first nine months of last year, but decreased compared to the same period of the previous year and amounted to -238.4 million. A lower gross contribution slight increase in gross benefitsfocused on the employment system, so that the net benefits of all systems as a whole increased by 446 million euros compared to the same period in 2021 to 722 million euros.
Retirement plans including individual and group retirement plans in the third quarter, reduced its assets by 2,571 million euros, until the total asset volume reaches 114,524 million euros. According to Inverco, the high volatility present in the financial markets due to geopolitical and inflationary tensions and recession fears has caused corrections in the stock and bond markets.
The assets of employee pension funds decreased by 1.9% in the third quarter compared to the previous quarter and reached an asset volume of 34 billion 471 million euros. This total number of participant accounts 1,908,148.