Aon International Retirement Monthly Newsletter
August/September 2020

Here is the latest edition of Aon's International Retirement newsletter. We have lots of content from Asia Pacific this time as well as updates on retirement hot topics in UK, Canada and USA. You can also access recent global surveys on International Pension Plans, Global Accounting Assumptions as well as sign up to our forthcoming events and webinars on Netherlands, Japan, France, Italy and Spain pensions issues.

As ever, please do let us know of any feedback or what you'd like to hear more of.

From Colin Haines, Partner, International Retirement & Investment

SURVEYS AND THOUGHT LEADERSHIP

Global

International Pension Plans Resilience Survey
International Pension Plans (IPPs) have often been used to great effect to solve the complexities of providing retirement benefits to mobile employees –with a particular focus on populations such as rotators and career expats. But with the majority of IPPs being defined contribution, how are they responding to recent financial market volatility and what should sponsor employers do now? We have insights from our IPP Resilience Survey.

2019 Global Accounting Assumptions Survey
This report presents the results of Aon’s global survey of accounting assumptions used for employee benefit plans at 2019 year-end. It will be of use to companies when setting preliminary assumptions for 2020 year-end and budgets for 2021.

Rising Resilient
In our brand-new field of thought leadership, Rising Resilient, we connect the dots between purposes, health, wealth and productivity and help HR functions articulate why wellbeing is important and how it impacts the overall resilience of a workforce, creating a call to action for more businesses to adopt progressive practices around wellbeing. The report includes financial wellbeing practices and the implications for employee long-term savings. Click here to view the microsite and download our report.

EMEA

UK: Pension Scheme Funding – an analysis of completed valuations
Aon UK sets out the approaches to and results of UK pension schemes' funding valuations completed up to July 2020. It shows the positions of schemes at effective dates to July 2019, and considers the assumptions adopted for assessing schemes' liabilities, and formulating recovery plans where schemes were found to be under-funded. Click here to read key findings and request access to the full report.

Asia-Pacific

China: An Emerging Equity Opportunity: China A-Shares
China has opened its local (A-shares) stock market to foreign investors. Given the size of China’s market and economy, this is a significant issue for institutional investors. Investors will get increased exposure to China over the coming years as indices and investment managers increase their exposure to Chinese A-share equities. Aon presents an overview of the opportunity here.

Japan: Amendments to the DC Pension Act
A new law to strengthen the pension system was enacted on May 29, 2020 and promulgated on June 5. The aim is to improve the economic foundation of the system and secure post-retirement income in an environment where employees stay in employment longer and the population is aging. Find out more in Aon's white paper.

Philippines: Retirement Benefit Survey now available
We have completed a comprehensive study covering all aspects of retirement plan design in the Philippines, as there is a clear direction o travel to provide employees with retirement and other financial wellbeing support outside of the statutory minimum. Click here for more details on how to access the report.

Singapore: Financial Wellbeing Survey – to be published soon
Many thanks to those who participated in our Singapore Financial Wellbeing and Retirement Survey. Results will be published soon; please click here to send an email to register interest in receiving the results.

Thailand: DB Valuation Trends
Aon Thailand’s Valuation Trends is a biennial study that examines the assumptions and experiences of retirement plans under global and local accounting standards. The report provides a snapshot of the changes in financial and demographic assumptions used to value the liabilities based on accounting disclosures for years ending in 2019. Click here to request a copy of the report.

Americas

US: Pension Risk Transfer
Aon US has published a mid-year update on market activity and themes from the first half of the year and highlights what to expect for the remainder of the year in terms of premiums and demand from insurers. Megan Nichols and Nick Kraver also discuss these insights in the fourth installment of our Core Retirement video series, available here.

UPCOMING EVENTS

Delegated Investment – The Bear; and now the Bull? – 16 September

2020 has been a year that none of us will forget! After the onset of the worst global pandemic since the Spanish Flu a century ago, equity markets experienced their fastest ever bear market (falls of 20%). Since then, central bank policy helped equities reach all-time highs. Unprecedented moves; unprecedented volatility.

In this webinar, specialists from our fiduciary and investment teams will look at various topics including future outlook, the role of hedge funds to support in recent volatility, and continuing momentum in ESG. Click here for details and to register.

Canada: The Importance of Employee Retirement Readiness – Our perspective on Capital Accumulation Plans (Re-run in French – 16 September)

Capital Accumulation Plans (CAPs) have become a major source of workplace retirement savings in Canada, we are now seeing the first generation of these members preparing to retire. Already employers faced the challenge of balancing costs while trying to do what is best for employees' retirement savings. Now, employers face layers of complexity in the wake of COVID-19 to improve retirement outcomes. What can employers do to provide better value? What can be learned from the pandemic crisis? Click here to register for the French version of the English-language webinar hosted earlier in the summer.

Netherlands: Pension Reform Conference – 22 September (in Dutch)

Do you have a pension plan in the Netherlands and would like to know how the pension system will change and how it will affect you? We are running a free conference (in Dutch) on 22 September. Click here for details and to register, or here for more details on the reforms.

UK: Pension and Lifetime Savings Association (PLSA) Annual Conference – 12 to 16 October

Aon will be sponsoring the Defined Benefit section of this year's PLSA (virtual) Conference. The Conference will address the “challenge to provide financial wellbeing for savers, provide financial products that work for a new type of retirement, invest in a way that protects our environment and society, and learn to withstand future shocks [that] has never been greater.” Confirmed speakers include Torsten Bell, Tony Burden, Martin Lewis, Laura Kuenssberg and David Olusoga. More information is available here.

International Hot Topics Webinars

Register for Aon's forthcoming International Retirement webinars via the links below:

PODCASTS AND WEBINAR RECORDINGS

International Hot Topics Webinars

Based on Aon Philippines' survey on retirement benefits (mentioned above), Aon presented a webinar on current trends in August. Click here to access the replay.

On 1 and 2 September, Aon presented on retirement trends in China and Hong Kong SAR.

UK: Risk Settlement – Q2 2020 Market Updates

Join UK Risk Settlement experts Mike Edwards, Karen Gainsford and John Baines who review activity in the risk settlement market for the first half of 2020.

US: Joint Investment webinar with JP Morgan Asset Management

Aon and J.P. Morgan Asset Management share new research and insights for organizations on how the DC plan of the future will have a renewed focus on employee financial knowledge and flexible strategies that will better support employees in retirement.

LOOKING FOR MORE?

Visit the Retirement and Investment Solutions page for more insights.

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