Risk Services Human Capital Consulting Reinsurance
The Aon Consulting Business Leaders Survey focuses on different pension regimes across Europe and the major impact each difference is having on the relative competitiveness of businesses. Additionally, the survey explores how the provision of pension benefits across key European countries has been affected by the financial turmoil.Aon Consulting employs a comprehensive network of employee benefits and risk management professionals, representing thousands of clients throughout Europe. From February to April of 2009, we conducted interviews with Aon Consulting chief executives and senior consultants working in eleven countries to establish their views on current and future challenges facing employee benefits provision, namely pensions.
Key findings include:
- The UK, Netherlands and Ireland are the main losers, suffering the biggest competitive disadvantage due to pension liabilities from sponsoring DB pension schemes.
- Companies least affected by the financial turmoil are those whose pension liabilities are based in countries with the most generous state-provided pension benefits, notably Austria, France and Spain, as private sector provision tends to be lower.
- Fully-insured and predominantly DC arrangements in Scandinavian countries have performed relatively well given market conditions but will face challenges over the medium term as conservative investment policies struggle to keep pace with increasing liabilities.
- The book reserved pension model in Germany and Austria, once regarded as unsustainable, is demonstrating its mettle.
- Liability calculation methods vary between countries, inhibiting transparency and introducing disparate levels of volatility in pension fund liabilities.
Download a copy of the report
Please complete the form below to download a copy of the report
Fields with * are mandatory
Aon Consulting Limited is authorised and regulated by the Financial Services Authority.