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Aon International Retirement Monthly Newsletter – April 2021

Q1 2021 has been a good quarter for accounting funding levels globally with discount rates and equity values increasing since the year end. In March there were further developments in the ESG landscape, including new disclosure requirements for pension funds and providers in the European Union. In this edition we've selected a number of interesting reports and articles covering these topics in more detail.

March also saw International Women's day and the OECD released a report looking into gender pensions gaps around the world. Aon has also produced an article on how diversity and inclusion can lead to better investment decisions.

This month, the focus of our International Retirement Webinar series will be Australia and New Zealand where we will discuss a range of topics covering the retirement landscape in these countries. To register or watch previous webinars click here.

If you have any feedback or if there is something you'd like to hear more of then please let us know.

From Colin Haines, Partner, International Retirement & Investment



International View on Employee Benefits Accounting
The 31 March 2021 edition of Aon's newsletter on discount rates, inflation rates, asset performance and other elements that influence your company's pension and other defined benefit liabilities. More information can be found here.

OECD Report: Towards Improved Retirement Savings Outcomes for Women
According to the OECD's research into gender pensions gaps in member countries, women over 65 take 26% less retirement income than their male counterparts. The OECD report covers the reasons why these gaps originate and provides a number of policy recommendations that could help policy-makers, providers and employers address the gap.

Aon's Guide to ESG Investing: The Benefits of ESG Integration
In a world where ESG concerns are more pressing than ever, investors and companies are increasingly paying more attention to ESG information as the benefits become more evident and the risks and opportunities from doing so grow. A growing body of evidence finds that those companies which pay attention to ESG concerns create long-term value, with better corporate performance and lower risk exposure. More information can be found here.

Incorporating Diversity & Inclusion in Investment Decisions
In this article for PMI, Aon's Geri McMahon and Jennifer O'Neill explore why considering diversity and inclusion can lead to better investment decisions.

IEBA (UK Branch) Webinar – Global Virtual Working (26 April)
A discussion on the HR impacts (including tax, legal, pensions/benefits, wellbeing) arising as employers look to solidify their approaches to virtual working across borders a year on from the start of the pandemic. Tomm Adams (Aon International Retirement and IEBA UK Branch Committee Member) will chair, and be joined by Penny Pemberton (Aon Global Benefits), Sarah Mullen (PwC Tax) and Jorgen Pedersen (Former Head of C&B, Saint Gobain). Click here for more details of this and other events and here for information on IEBA membership.

United Kingdom

UK Risk Settlement Market Update
For the UK risk settlement market, 2020 was another record-breaking year with over £55bn of bulk annuities and longevity swaps written despite the challenges presented by the COVID-19 pandemic. Click here for more information.

Aon 2021 Member Options Survey Results
The survey focusses on the level of support available to members at retirement and the changes schemes plan to make over the next year. The key findings, insights into the latest trends, combatting pension scams and the impact of COVID-19 can be viewed here.

More content:

EMEA (excl. UK)

 Here are some pieces you may have missed:

Do not forget to view Aon's International Retirement & Investment website and stay updated!


SINGAPORE: Increases in Singapore's retirement age and social security contribution rates
The Singapore Government has increased the minimum retirement and re-employment ages from 62 to 65 and 67 to 70 respectively, along with increases to the contribution rates for those aged between 55 and 70. Employers should consider reviewing HR policies and employee contracts before July 2022 to ensure compliance with legislation. For more information click here.

SOUTH KOREA: Employee Retirement Benefit Security Act (ERSA) and Employer governance requirements
The Korean National Assembly recently approved the amendment of Employee Retirement Benefit Security Act (ERSA). The changes increase the governance requirements for DB Plans with more than 300 members including the requirement for an investment policy statement and instructing an investment committee to make decisions in regards to investment of DB plan assets. Further information can be found here.

AUSTRALIA AND NEW ZEALAND: International Retirement 2021 Webinar Series
Our next webinar will be on Australia and New Zealand on 21 April 2021. The webinar will cover the Australian superannuation system, employee benefits, salary packaging, financial wellbeing trends, DB funding and New Zealand KiwiSaver system. Registrations can be made via the following link.

More content:

United States and Canada

Pathways: Defined Benefit Plan Termination
In this recent instalment of Aon's U.S. Retirement videos, Steven Kilbride, Partner, and Bryan Falato, Associate Partner, deliver an overview of plan terminations. Watch now to learn why they expect to see an increased focus from plan sponsors in 2021.

2021 Aon Pension Risk Tracker Report
This report looks at the defined benefit pension plans of S&P 500 companies and analyses the funded status, corresponding risk tolerance of each sector, provides insightful benchmarks, and further illuminates defined benefit pension plan trends.

More content:


International Retirement Webinar Series
Join Aon's International Retirement & Investment team to hear insights on local market developments around the world. Each webinar will help those responsible for governing, managing and overseeing retirement plans to understand new local retirement topics and key changes in local legislation. Click here to register to the series.


You or your colleagues may be interested in accessing these recent webinars, available in local language:

  • UK: Vaccines, volatility and value – charting the course for 2021.This webinar is designed to support companies in this very complex environment as they set strategies for the year(s) ahead.
  • US: Q1 Market Update - R&I Investment Series Kick-off - Investing in 2021: The Real Risk/Reward Challenge
  • US: Pooled Employer Plans, SECURE 2.0, and the Future of Retirement Security.
  • Ireland: IORP II - Preparing for Compliance for Irish Pension Schemes

For additional information and other international retirement queries, please contact us.

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