Performance persistence of Spanish pension plans

Abstract

Pension plans and funds represent a substantial part of the welfare systems in both Europe and Spain. One of the most important factors in the choice of a plan or fund is its performance, because if high returns are obtained, the participant will receive higher payments when the contingency covered by the plan or fund occurs. The main objective of this paper is therefore to analyse the performance persistence of individual pension plans. To this end, we use two methods: contingency tables and transition matrixes. The results obtained show that the performance persists over time.