New pension plans gain in popularity, employer plans less attractive

Pension plans have eclipsed the programs that major companies usually offer their workers as an alternative retirement plan.

These plans became less attractive last year when the risk premium was at historic highs, but now they are offering competitive yields thanks to bets on Spanish fixed income funds, which benefited from 4.7% falling bond prices.

No comissions for management or deposits make these products noticeably thriftier, and with yeilds above 10% they have become worth alternative investments for workers. At least that is what Caixa Galicia is saying. It?s retirement plan is yielding 11.7% this year.