Business · Markets · 1 hr ago
Spanish lifetime annuity returns rise to around 4%
Lifetime annuities are insurance products that pay a person regular income for the rest of their life after a single upfront payment.
In Spain, insurers including BBVA, Santander, Ibercaja, Mutua Madrileña and Santalucía have updated their offers as interest rates rose.
Some products now advertise annual returns close to 4%, though rates and monthly payments vary by insurer and the buyer’s age.
For example, BBVA offers up to 4.1% a year to a 60-year-old, while Ibercaja offers 4% to customers aged 55 to 64.
These products are aimed especially at older savers, and Spanish tax rules allow a portion of the income to be exempt from tax, with the taxable share depending on age.
Some policies also provide beneficiaries with a payment if the insured person dies.
The products require a single upfront contribution, unlike pension plans that are built through regular saving over time.
Spanish lifetime annuity products are offering returns of around 4% after interest rate increases by the European Central Bank.
Santander, BBVA, Ibercaja, Mutua Madrileña and Santalucía have updated returns, while other firms are preparing to do so.
Rates vary by provider and customer age, with some offers reaching 4.1% or more.
These policies are typically bought with a single payment and provide income for the insured person's lifetime.
The products can also offer tax benefits, and some provide beneficiaries with a capital payment if the insured person dies.
- Who
- Spanish insurers and savers considering lifetime annuities.
- What
- Insurers have raised returns on lifetime annuity products to around 4%.
- When
- The article was published on 12 October 2026. It says rates rose after interest rate increases.
- Where
- Spain.
- Why
- The increase in interest rates by the European Central Bank has been passed on to these products.
This story does not have two clearly opposing sides.
offers up to 4.1% annually on its lifetime annuity for a 60-year-old
Higher rates were passed on to lifetime annuity products.
Expansión reported that several insurers had updated their returns, with others preparing to do so.
- BBVA rate
- Up to 4.1% annually for a 60-year-old
- Santander rate
- 3.37% net for a 60-year-old
- Mutua Madrileña rate
- 4.05% gross annually for customers up to age 68
- Ibercaja rate
- 4% for customers aged 55 to 64
- Single premium example
- €100,000 with Ibercaja at 4% pays a 65-year-old €316.79 gross per month
Sources
Related news
Renault unveils electric E-Space concept that could be built in Spain
Ibex opens the week above 19,000 points as investors watch oil and earnings
European stock futures rise as oil falls 1%
Forum discussion links AI productivity with the need for critical thinking
Spanish power companies offer fixed electricity rates for up to 10 years
Catalan family accessories business expands into the US market
Homes in flood-risk areas lose value after 2024 Valencia floods
Spain’s competition regulator urges looser rules for data centers
Students from Lugo win Spain’s youth financial knowledge contest
Financial products have left Spanish investors facing risks they did not understand
Cabify’s Spain head discusses work, drivers and life beyond the job
