Spain is hoping to entice people to prepare for retirement with a voluntary saving plan as it tries to wean them off relying solely on state pensions.

The aim is to set up a fund run by private investment companies by the end of the year, offering Spaniards an affordable alternative to supplement their public pension. But unlike some other countries, the system will require workers to opt in rather than being automatically enrolled.

“We think there’s a group of middle- and low-income Spaniards who will be interested in a boost to their lifetime savings, which can complement their public pension,” Jose Luis Escriva, the social security minister for Spain’s Socialist-led government, said in an interview.

Escriva wants to enhance savings and to counterbalance dependence on the state plan, a system economists say is a challenge to fiscal sustainability. The choice to keep the pension voluntary reflects political concerns among some left-leaning lawmakers about involvement of the private sector, but the minister is hopeful it can still make a difference.

“There’s enormous potential,” said Escriva, an economist who previously worked at the International Monetary Fund and European Central Bank. “Right now, there’s a huge reliance on the public pension.” Workers need more options, he said.

Escriva’s team and the Economy Ministry are setting up the framework for the new pension plan, establishing maximum commissions and tax incentives. Officials will open a bidding process soon to select one or more fund managers.

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