- The average management fee is reduced from 1.50% to 1.25%, while the deposit fee goes from 0.25% to 0.20%
- Participants may withdraw contributions from at least ten years from 2025
The Council of Ministers has approved the Royal Decree (RD) of Modification of the Regulation of Plans and Pension Funds in the Area of Liquidity and Reduction of Commissions, with which it is intended to increase competition in this segment and increase the attractiveness of these products of saving. On the one hand, the maximum management fees are revised down based on the fund's investment policy and, in turn, the liquidity of this savings alternative is increased by allowing the participants to withdraw from 2025, without limitation, contributions with an age of at least ten years. These measures will benefit more than eight million Spanish savers who are currently participating in pension plans.
The RD differentiates the management fees according to three types of pension funds. A maximum of 0.85% is applied for fixed income funds, which means a decrease of 65 basis points compared to the current limit; a cap of 1.30% for mixed funds, 20 basis points less; and 1.50% for equity funds (the same limit as now). With the new percentages, the average commission calculated according to the distribution of equity between the different types of funds falls from 1.50% to 1.25%. In turn, the maximum deposit commission is reduced from 0.25% to 0.20%. This drop in maximum commissions adds to the one already made in 2014, which meant a 30% drop. The reduction of management and deposit costs will have a positive effect on the net profitability that the participants obtain for their savings, especially in fixed-income pension funds, which have been affected by low interest rates.
The new standard regulates the liquidity of funds and pension plans. Thus, contributions with an antiquity of at least ten years from January 1, 2025, will be available, without limitation, which will be a stimulus for savers, especially for the youngest. In this way, all contributions made before 2015 can be made as of 2025 and those made after the corresponding ten years must pass.
Additionally, the regulation of pension fund investments is updated in order to update the references that the Pension Plans and Funds Regulation makes to other national and Community financial regulations in force. Thus, the necessary references are incorporated to Law 22/2014, of November 12, which regulates venture capital entities, other collective investment entities of closed type and management companies of collective investment entities of type closed; Likewise, participations in the European Venture Capital Funds (FCRE) and the European Social Entrepreneurship Funds (FESE) are expressly included as suitable assets for pension funds.
The Royal Decree enters into force the day after its publication in the Official State Gazette, except for the application of the new limits of the management and deposit commissions, which will be made two months after the date of its publication in the BOE
