PensionFunds, Consulting
Redefining pension funds: impact on marketing
In the dynamic financial landscape, Spanish pension funds are undergoing a significant transformation.
The recent implementation of Law 12/2022 and the amendments introduced by Royal Decree 668/2023 are reshaping the market and presenting new challenges and opportunities in the marketing of pension funds.
Significant changes in regulation
Law 12/2022 and Royal Decree 668/2023 have triggered significant changes in the regulation of pension funds. Their main objective is to boost occupational savings and promote supplementary social security.
This regulatory change not only redefines the rules of the game but also demands rapid adaptation from fund managers to ensure their relevance in this new financial landscape.
A crucial aspect of this transformation is the upcoming entry into force of the Regulation on Pension Plans and Funds Regarding Liquidity and Fee Reduction for 2025. This regulation governs the redemption of pension plans starting from the tenth year of ownership.
In other words, pension plan holders will be able to redeem contributions made up to 10 years prior and any accrued returns. The new law allows for the recovery of funds without any limitations and without requiring any exceptional circumstances.
Attractive to new participants
The regulatory transformation not only redefines the rules of the game but also creates a more attractive environment for new participants. The introduction of publicly subsidized occupational pension funds and simplified occupational pension plans adds an extra layer of flexibility.
This change directly addresses diverse employment and business needs, anticipating increased demand, especially among SME and self-employed workers who have historically been excluded from these financial benefits.
The option to withdraw funds starting from the tenth installment adds further appeal for new participants, offering a long-term liquidity option. This factor could catalyze increased demand for pension plans, particularly among those who value financial flexibility as a crucial element in their investment decisions.
The increased contribution limits and income tax deductions, as well as new tax incentives for companies and reductions in social security contributions, act as significant stimuli. This not only motivates employees to participate, but also provides companies with financial incentives to contribute to occupational pension schemes.
Adaptation to the new regulations
While these opportunities are clear, it’s essential to recognize the administrative challenges that pension fund managers will face in this new landscape.
The increase in the number and diversity of participants, as well as the variety of plans available, implies greater complexity in document management, contribution tracking, and regulatory compliance.
ARENA, as a technology and BPO specialist, offers customized services to address the specific challenges pension fund managers face in marketing their pension funds.
In the following blog post about pension funds, we will delve into each of these challenges and how ARENA can become the perfect partner to navigate these changes.
