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Aon International Retirement Monthly Newsletter – June 2021

In this month's newsletter we focus on the changes in pension legislation in Netherlands and Ireland. In Asia Pacific we look at the key changes to Superannuation in the May budget whilst in North America we take a look at retirement readiness through the lens of inclusion and diversity.

The focus of our next session in the International Retirement Webinar series will be the Netherlands on 7 July where we will discuss a range of topics covering the retirement landscape. In previous months we have focussed on Canada, Australia & New Zealand and Europe. Click here to register and click here to watch previous webinars.

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



The 'new normal' – Where are we a year later?
Last summer Aon published a paper titled "The New Normal – What is it and what does it mean for investors?". Almost a year on we reflect on those nascent or developing themes. Click here to access the paper.

OECD Global Pension Fund assets reach USD 35 trillion
The OECD have just released their annual Pension Funds in Figures. Preliminary data for 2020 show that pension funds held over USD 35 trillion of assets worldwide at end-2020, exceeding 2019 levels despite the headwinds due to COVID-19. Pension fund assets grew by nearly 9% in the OECD area to reach USD 34.2 trillion at end-2020. Outside the OECD area, pension fund assets amounted to USD 0.8 trillion at end-2020 in a group of 31 jurisdictions, just over 1% more than at end-2019.

United Kingdom

Risk Settlement Bulletin – Q2 2021
The bulletin looks at the importance of accurate marital information for transactions, the latest mortality projections and long-term journey planning. Click here to access the bulletin.

More content:

  1. Access our UK Retirement & Investment Webpage
  2. Access our latest UK Insights
  3. Access our latest Market Views & Analysis
  4. Learn more about responsible investment
  5. Keep up to date with what is happening in the risk settlement market

EMEA (excl. UK)

Ireland: IORP II is finally here…! – April Flash Report
On 22 April 2021 the Minister for Social Protection signed the 'European Union (Occupational Pension Schemes) Regulations 2021' to transpose the IORP II Directive into Irish law, being some two years after the original 2019 deadline and making Ireland the last EU country to do so. This legislation represents the biggest change in Irish pensions in over 30 years since the passing of the Pensions Act 1990. It will significantly increase the level of governance and compliance required of all Irish pension schemes and will place additional burden on trustees and plan sponsors in terms of time and cost. Click here to access the full report.

South Africa: Two important things to know if you are late to the retirement saving game - article
The Covid-19 pandemic and resulting economic crises have severely hit the financial wellbeing of many across the globe, the impact of which is likely to be felt for the long-term. This article discusses changes in legislation and trends in the South African landscape with the aim of closing the significant retirement savings gap.

Netherlands: New Pension Law
It has been announced that the new pension law will come into effect a year later than expected, on January 1, 2023. The aim remains to be able to switch to the new pension system by January 1, 2026.
Click here to learn more and click here to access wider Aon information on the pension reforms.

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

  1. France: New Defined Benefit Plan, a must-have in executive compensation? - survey
  2. Switzerland: International Accounting – Assumption Update

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


Australia: Key changes in the May Federal Budget
No changes affecting the Superannuation Guarantee increase timetable were announced, which is still due to increase to a minimum of 10% p.a. from July 1, 2021. The concessional tax contribution is also set to increase to AUD 27,500 from July 1, 2021. Furthermore, the Government will remove the current AUD 450 p.m. minimum income threshold under which employees do not have to be paid the superannuation guarantee by their employer. This measure is expected to have effect from July 1, 2022. The Retirement Income Review estimated this would impact 300,000 individuals, 63% of whom are women. Further information can be found here.

India: New Covid-19 death-in-service benefits
Since March of 2021, India has witnessed a severe second wave of the Covid-19 pandemic leading to a significant loss of lives. Over the last few months, several organisations have announced generous supplementary benefits to families of deceased employees on a self-funded basis. Vishal Grover explores some of the aspects of the Death-in-service Employee Benefits that have drawn attention in recent months in this paper.

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

  1. Thailand: Developments to the National Pension Fund 2021
  2. Singapore: 2021 Trends in Retirement & Financial Wellbeing

Stay updated

  1. Access our latest APAC Retirement & Investment Insights

United States and Canada

Retirement Readiness through the Lens of Inclusion and Diversity
Overall, only 1 in 3 workers will have saved enough to retire comfortably by age 67. What would this result look like when focusing on race/ethnicity, gender, or generation? Aon's analysis and tools help identify the range of expected retirement outcomes that your employees face and the actions you can take to improve the retirement readiness across your entire workforce. Read more here.

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

  1. U.S. Pension Risk Transfer Annuity Settlement Market Update
  2. Lump Sum Windows | Emerging Trends and New Opportunities Amidst a Pandemic

Stay updated:

  1. Access our North America Aon Retirement Insights
  2. Access our North America Aon Investment Insights
  3. Access our Canada Aon Retirement Insights
  4. Access our Canada Aon Investment Insights


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 Australia & New Zealand and Canada and Europe and on 7 July 2021 the focus will be on the Netherlands.
Click here to register and click here to watch previous webinars

Aon Risk Settlement Conference: Identifying your journey to settlement
Join us on Tuesday 29 June as Aon host a variety of online virtual sessions which will give you greater clarity on what actions you can take to reach pension scheme settlement, and key considerations for your journey.
View the full agenda here and register to attend here.


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

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