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Aon International Retirement Monthly Newsletter – July 2021

Q2 2021 has been another good quarter for accounting funding levels globally with discount rates and equity values increasing since the year end. In this month's newsletter we've also selected articles and reports discussing the issues affecting retirement plans in Japan and Australia. There are also a number of new webinars to sign up to including Canada (July) which covers risk management and Switzerland (September) covering all employee benefits.

The focus of our next session in the International Retirement Webinar series will be South Korea on 4 August where we will discuss a range of topics covering the retirement landscape. In previous months we have focussed on the Netherlands, Canada, Australia & New Zealand and Europe. Click here to register and click here to watch previous webinars.

We will take a break in August, and the next newsletter will be with you in September.

If you have any feedback or if there if 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 30 June 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.

United Kingdom

Aon Risk Settlement – Identifying your journey to settlement
Last month Aon hosted a risk settlement conference with the aim to give you greater clarity on what actions you can take to reach pension scheme settlement, and key considerations for your journey. Topics included the impact of latest longevity trends, market updates and life after a settlement transaction. Access to all sessions can be found here.

More content:

EMEA (excl. UK)

Aon Switzerland Webinar Series
This webinar series covers monthly seminars focusing on themes around risk, health, pension services and insurance. The next event will be in September. Click here to sign up.

Here are some pieces you may have missed last month:
  • Ireland: IORP II is finally here…! – April Flash Report
  • South Africa: Two important things to know if you are late to the retirement saving game
  • Netherlands: New Pension Law

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


Australia: Change is Coming to Australia's Retirement Contribution Scheme; Here's What Employers Should Know
It's been seven years since employers with workers in Australia have dealt with an increase to the country's retirement contribution scheme, but a change set for 1 July will require firms to plan their approach and employee communication strategy. Find out more here.

Japan: Employer Retirement Risk Implications of Reduction to Investment Product Returns
With bond yields continuing to decline, it was becoming more and more difficult to maintain the same level of guaranteed interest on general account products. As a result, life insurance companies have mostly stopped underwriting new general account products, ultimately leading to the reduction in the guaranteed interest rate to 0.25%. This is causing companies that used to make use of these products to review their pension asset portfolios and makes changes to their allocation. Click here to learn more.

More content:
Here are some pieces you may have missed last month:

  • Australia: Key changes in the May Federal Budget
  • India: New Covid-19 death-in-service benefits
Stay updated

United States & Canada

Canada: Defined benefit pension plans' financial health continues to improve in Q2 2021
The aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index increased from 94.8% to 95.6% during the past three months to 30 June 2021, according to the Aon Pension Risk Tracker. This was driven by equity markets continuing to do well in the second quarter combined with interest rates remaining fairly stable. Further information can be found here.

Canada: Risk Webinar
This event on 14 July 2021 will focus on risk management challenges during the Covid-19 pandemic and the current economic climate. Discussions will include managing volatility and an array of risk management strategies from hibernation to re-risking to the considerations for a pension risk transfer. Click here to register.

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. Most recent webinars have included Europe and the Netherlands and on 4 August 2021 the focus will be on the South Korea.
Click here to register and click here to watch previous webinars.


You or your colleagues may be interested in accessing these recent webinars:

  1. Global: 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.
  2. US: Q1 Market Update - R&I Investment Series Kick-off - Investing in 2021: The Real Risk/Reward Challenge
  3. US: Pooled Employer Plans, SECURE 2.0, and the Future of Retirement Security.
  4. Ireland: IORP II - Preparing for Compliance for Irish Pension Schemes
  5. UK: The Decline of Women's Labour Market Participation During COVID-19: A Systemic Risk
  6. UK: Virtual DC Live Week: Keeping on track in challenging times

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