Andorra's Retirement Fund Hits Record €1.95 Billion in 2025

Andorra's Retirement Reserve Fund ended 2025 at a record €1.9531 billion, up €130.2 million from €1.8229 billion at the close of 2024. Provisional figures in the fund's December monthly report, pending final audits, show a 5.6% annual return—more than double the 2.7% consumer price index.

The portfolio rose €5.9 million from November's €1.9472 billion, recovering from a minor decline after October's prior high of €1.9502 billion. Fund managers called 2025 a positive year, with gains across all asset classes fueled by easing global monetary policy, robust international economic growth, and expectations around artificial intelligence's sectoral impact.

This marks the third consecutive year of record highs. Three-year cumulative returns stood at 24.7%, five-year returns at 20.6%, and ten-year gains at 35.4%. Since December 31, 2012, the fund has grown by €1.0407 billion, including €463.1 million from Caixa Andorrana de Seguretat Social pension branch surpluses and €577.6 million from internal and external management returns. Over that span, total returns reached 48.3%, well above 26.2% cumulative inflation, fulfilling Law 11/2025 requirements. Five-year annualized volatility stayed low at 5.2%.

The portfolio emphasized conservative investments: 61.7% in monetary assets and fixed income, primarily short-term instruments such as money market funds, commercial paper, term deposits, current accounts, and sovereign or corporate bonds. Equities made up 29.7% via listed stocks, ETFs, and investment funds, with illiquid assets and private equity at 8.6%.

These results, building on a rebound from 2024's -7.1% drop, strengthen the long-term viability of Andorra's pension system.