Garralda (Mutua Madrileña): "Hay que incentivar los planes de pensiones de empleo"

Ignacio Garralda, president of Mutua Madrileña, emphasized the importance of boosting pension plans for employees during the XVII EXPANSIÓN-KPMG Financial Meeting. Garralda argued that pension products possess greater potential than individual retirement plans, and they should be promoted. However, he lamented the lack of activation of public pension funds, stating that they are not functioning as they should.

Regarding the pension crisis, Garralda noted that the situation has worsened compared to the previous year. He pointed out that 25% of the voting electorate is pensioners, which is an extremely significant political component. Garralda highlighted the 60 billion euro deficit that the state contributes to pension payments, which accounts for approximately 3% of the GDP. If this deficit were eliminated, there would be more funds available for healthcare and education.

The Mutua Madrileña president advocated for the UK's auto-enrollment mechanism, which automatically enrolls all workers into a private pension scheme unless they opt out. Garralda believed that this approach is the best way to ensure employee participation in pension plans. He also emphasized the need to refine the taxation of pension benefits earned by workers upon retirement, particularly on accumulated returns over the years.

Mutua Madrileña is currently preparing its future strategic plan, set to commence in 2027. The company aims to expand its scope of activities, according to Garralda, with diversification being an ongoing process. Over the past 18 years, the company has shifted its focus from mainly operating in Madrid to diversifying into other sectors and regions.

The president praised El Corte Inglés' involvement in the joint insurance agency they maintain together, following their alliance signed a few years ago. He noted that the senior management's engagement is highly positive, and all business plans are being executed faithfully. Garralda appreciated the compatibility between Mutua and El Corte Inglés' visions, particularly their focus on customer loyalty and long-term thinking.

He also highlighted the company's presence in Luxembourg, where they have a Sicav and have merged several funds, allowing them to more easily market investment products to foreign investors.