Pensions - Articles - S&P Capital IQ: Pension Problems in Europe


A new research brief from S&P Capital IQ’s Quantamental Research Team outlines by-the-numbers which companies have the strongest (and weakest) pension funding status, what the global trends are in pension funding and accounting, which companies have the most aggressive (and conservative) accounting assumptions, and which underfunded plans with the least- (and most-) improved three-year funding improvements.

 The following are some of the key findings:
     
  1.   Financial companies appear to have the best funding status in both the U.S. and in Europe, with BBVA being a notable exception
    2.  
  2.   Investment returns have been solid, but cash contributions to pension funds have been declining across regions, relative to plan assets, despite the tremendous amount of cash corporations have on hand--for S&P 500 companies, from 5.9% of assets in 2008 to 3.4% in 2013
    3.  
  3.   In both the U.S. and Japan, industrial companies have high actuarial rates (conservative accounting)—and S&P 500 industrial companies appear to have lower (more aggressive) ratings
    4.  
  4.   Just 38% of S&P 500 pension plans are funded at 90% based on current data
  
 For S&P 500 companies as well as those in Europe and Asia, there’s been a noticeable shift to fixed income investments and away from equities, which could make things difficult with central banking QE plans. A bull market, if it appears, could also prove problematic.
  
 Please download the full report by clicking on the document below
  
 
 
  

Back to Index


Similar News to this Story

TPRs oversight of largest DC schemes is evolving
Master trusts, some of the UK’s biggest defined contribution (DC) schemes, will be supervised differently to identify market and saver risks sooner an
Pension disengagement may cost you GBP500k in retirement
Failing to actively engage with pensions during one’s working life could have a staggering financial impact, according to a new report from PensionBee
Ongoing confusion over IHT proposals and pension priorities
Sacker & Partners LLP (Sackers), the UK’s leading specialist law firm for pensions and retirement savings, today announced the results of their most r

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.