Survey: Global Pension Risk Survey 2017

This survey report identifies current and proposed approaches to pension risk, identifying trends and examining schemes' options for the future.

Key findings:

  • Since Aon's last Global Pension Risk Survey two years ago, the defined benefit pension market has been characterised by sustained low gilt yields and political volatility.
  • Aon's Risk Analyzer funding monitoring tool finds that over the year since 31 March 2016 the median scheme has seen around a 2% increase in funding level.
  • The top 5% of schemes have seen increases in funding level of more than 9%, whereas the bottom 5% have seen their funding level fall by more than 5%.
  • Schemes have taken significant action in response to the changes of the past two years, such as hedging instruments through alternative financing options and into additional pension options for members.

Aon surveyed 185 schemes. The UK findings are part of its wider Global Pension Risk Survey comprising surveys from Brazil, Canada, Germany, Ireland, Japan, the Netherlands, Switzerland and the US, as well as a global survey for those with multinational pensions responsibility.