Retirement Financial Management in Utilities

Financial Management of Retirement Programs in the Utility Industry
2025 Benchmarking Report

Financial Management of Retirement Programs in the Utility Industry

Learn how utilities are capitalizing on record-high pension funded ratios to strengthen financial resilience, and address regulatory requirements.

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Managing retirement programs in the utility industry goes beyond meeting obligations—it’s a foundation for financial strength, workforce stability, and future growth. The 2025 Utility Industry Benchmarking Report examines how utilities are adapting their pension and retiree health strategies amid an increasingly complex and regulated landscape.
Key Takeaways
  1. Funding Levels Reach New Highs: Utility pension plans achieved an average funded ratio of 102%. Discover what’s driving the growth and how utilities are leveraging strong funded status to manage risk.
  2. Strategic Shifts in Investment and Funding: In response to market volatility and evolving regulations, utilities are adjusting investment strategies—eight out of 30 companies modified their fixed income allocations in 2024. Discretionary contributions remain an important lever as organizations navigate industry pressures.
  3. Health and Welfare Programs in Transition: — Legislative and regulatory changes are prompting utilities to reconsider retiree health benefits. There is a growing trend toward exchange-based solutions for Medicare-eligible retirees, with a focus on cost management and regulatory compliance.
Explore insights on Utility Retirement Programs

  • 102%

    Average year-end funded ratio for utility pension plans in 2024

  • 18.6%

    Increase in the average funded ratio for the utility industry over the past decade.

Navigating Retirement Program Challenges

Effectively managing retirement programs today requires a proactive approach to funding, investment, and benefit design, all while keeping pace with regulatory developments. With experience across the utility sector, Aon offers benchmarking, strategic insights, and implementation support to help organizations address the evolving complexities of retirement program management.

Unlock Deeper Insights with Aon’s Interactive Utility Benchmarking Tool

Unlock the full potential of your retirement programs with Aon’s Interactive Benchmarking Tool, designed to put you in control. Our innovative approach lets you customize peer groups and timeframes, so you can explore key findings tailored to your needs. Benchmark your organization against industry peers, assess regulatory impacts, and gain actionable insights to enhance your utility’s financial resilience. Connect with us today to empower your decision-making with confident, data-driven strategies.

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