The impact of occupational pension plans on the pension saving behaviour of Spanish households

The evolution of pension systems across Europe is influenced by the intricate dynamics among three pillars: public pensions, occupational pensions, and individual retirement savings. Against the backdrop of demographic changes and economic challenges, comprehending the relationship between these pillars is crucial for the optimal design of the entire system. This paper examines the connection between the second and third pension pillars in Spain, utilising data from the Spanish Survey of Household Finances 2020. The study employs logit and cluster analysis to explore how the promotion of occupational pension schemes influences the uptake of individual private pension plans, with a particular focus on the reference person within households. The results reveal that when assessing the impact of the second pillar on the third pillar, if the reference person is the participant in the occupational pension plan, the effect is negligible. However, if it is another household member, there is a 10.1% increase in the likelihood that the reference person possesses a third pillar instrument. In households with substantial real assets and anticipating lower future income, this percentage increases to 46%. Overall, the analysis emphasises the complementary nature of the individual and occupational pension pillars in Spain.