A rapid growth in the average salary across the economy means that the assets of private pension funds are set to increase beyond expectations, which has stirred a great deal of interest on the market.

Estimates made by companies at the start of this year showed that the mandatory private pension market (pillar II) would manage one billion euros in assets by 2011. However, this year's significant rise in salaries could make it possible to achieve this figure by 2010, according to the latest estimates.

This is why the number of companies interested in managing a mandatory private pension fund has increased. The official estimates (of the Private Pension System Supervision Commission - CSSPP) at the beginning of the year indicated that 9 or 10 companies could manage mandatory pension funds. The number of companies already licensed to do so has reached 13, with five more on the waiting list.

Overall, the 13 mandatory private pension managers have already invested more than 118 million euros in share capital alone.

The campaign to sell such products starts in less than a week, on September 17 and will last for four months until January 17. All employees under 35 years of age are required by law to join a private pension fund, whilst employees aged between 35 and 45 have the option but not the obligation of joining a fund.

At the end of the four-month period, estimates show that 2.5-3 million employees will have joined a fund and will start to make their first contributions. In 2008, each participant will transfer, to the their chosen fund, 2% of the 9.5% they pay as a social security contribution. The higher the salary, the higher the level of contributions transferred to the privately managed system, and the faster assets will accumulate.

The average salary increased by 28% in euros in the first half of this year, compared with th