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COVID-19 Response Site

Aon’s UK Retirement and Investment teams have established this resource site to support pension schemes and trustees in their response to the coronavirus pandemic, and in planning more generally for crises that may have an impact on employers, schemes, trustees and members.

This site is designed to present practical solutions that are actionable, timely and relevant to client needs.

For more information, please contact us. For media enquiries, please contact Colin Mayes. You can read the latest edition of our regular COVID-19 R&I Bulletin here.

COVID-19 Resources

Investment & Markets

Markets have ‘extreme’ expectations for economic recovery, says Tapan Datta, head of global asset allocation at Aon. Watch the CNBC interview where Tapan shares his outlook for the second half of 2020.

In this paper, Tapan Datta focusses on the extraordinarily powerful recovery in US equity and credit markets since the large market falls in March, the fastest such turnaround in history. He looks behind this astonishing comeback, asking why it has been so different to the last major downturn in 2008.

In this short podcast, Tapan Datta, head of global asset allocation for Aon, considers the economic impact of the pandemic and asks if the reaction by governments and the authorities has been appropriate to the scale of the economic problem.

In stressed markets, investors are distracted by media noise and often trapped by the behavioural financing of the crowd. In this paper, Aon’s experts look at two reasons why disciplined rebalancing is the right strategy.

You can read previous market updates and other investment analysis on this page.

 

Governance and crisis planning

Many companies are looking for ways to control costs as the economic consequences of the pandemic start to be felt. Actions can include temporarily reducing or suspending DC retirement benefit spend, although regulatory flexibility to do this varies greatly across different countries. This study shows where countries provide flexibility around company/employee contributions and employee hardship access to DC funds, including recent specific changes in response to COVID-19.

In a time when more and more of us are working in ‘isolation’, how do trustees continue to operate as effectively as possible?

As employers and trustees react to the current environment, members may be left considering their options and wondering what this all means for their retirement savings.
We’ve compiled ten questions for you to consider how best to support your members at this time and continue to deliver good value to them.

Including responding to the impact of COVID-19

As employers and schemes react to the coronavirus, members may be left considering their options and wondering what this all means for their pension benefits.
We have compiled ten questions for you to consider how best to support your members at this time and ensure your scheme is well placed to help members.

It looks as if boards will need to continue to operate within this restricted environment for a prolonged period, and need to work out how to operate in this environment for successive meetings. This document shares the immediate actions DB pension schemes to take now, some actions to set up for the ongoing months and steps to take to support your business continuity plans in the future.

It looks as if boards will need to continue to operate within this restricted environment for a prolonged period, and to work out how to operate in this environment for successive meetings. This document shares the immediate actions DC pension schemes to take now, some actions to set up for the ongoing months and steps to take to support your business continuity plans in the future.

Our ten questions check the resilience of your DB pension scheme to a crisis, whether it be the current situation or something else. These address a range of core areas aligned to governance, investments, administration and member communications.

Our ten questions check the resilience of your DC pension scheme to a crisis, whether it be the current situation or something else. These address a range of core areas aligned to governance, investments, administration and member communications.

You can read more on the ways Aon can help you with governance and crisis planning here

 

Pension Administration

Our ten questions help you rate the resilience of your DB pensions administration service to the current COVID-19 crisis, and may also help plan your business continuity responses for future crises.

 

DC Pension Schemes

Many companies are looking for ways to control costs as the economic consequences of the pandemic start to be felt. Actions can include temporarily reducing or suspending DC retirement benefit spend, although regulatory flexibility to do this varies greatly across different countries. This study shows where countries provide flexibility around company/employee contributions and employee hardship access to DC funds, including recent specific changes in response to COVID-19.

As employers and trustees react to the current environment, members may be left considering their options and wondering what this all means for their retirement savings.
We’ve compiled ten questions for you to consider how best to support your members at this time and continue to deliver good value to them.

We have compiled ten questions to check the resilience of your investment arrangements to a crisis, whether it is the current situation or something else. The checklist addresses a range of areas such as member options, governance structure and market opportunities.

It looks as if boards will need to continue to operate within this restricted environment for a prolonged period, and to work out how to operate in this environment for successive meetings. This document shares the immediate actions DC pension schemes to take now, some actions to set up for the ongoing months and steps to take to support your business continuity plans in the future.

Our ten questions check the resilience of your DC pension scheme to a crisis, whether it be the current situation or something else. These address a range of core areas aligned to governance, investments, administration and member communications.

You can read more on the ways Aon can help you with your DC pension scheme here

 

Pension Scheme Risk Settlement

As COVID-19 cases and deaths continue to rise, this briefing aims to provide a balanced and objective view, in particular: placing the figures emerging in context and focussing on their implications for the longevity outlook for UK pension schemes.

Aon’s latest Risk Settlement Bulletin discusses the impact that COVID-19 is having on:
- UK Mortality
- Insurer bulk annuity cost
- Funding level resilience

Our latest Bulletin reviews the latest bulk annuity pricing, trading costs and looks at the emerging longevity impact of COVID-19. We also share details of the recent Co-operative Bank £400M partial pensioner buy-in.

You can read more on the ways Aon can help you with your pension risk settlement here

Global retirement plans

Where can you manage costs for global DB plans? Our document shows you which countries have cost flexibility, DB options and COVID-19 related guidance aimed to help employers and employees in the COVID-19 crisis.

Many companies are looking for ways to control costs as the economic consequences of the pandemic start to be felt. Actions can include temporarily reducing or suspending DC retirement benefit spend, although regulatory flexibility to do this varies greatly across different countries. This study shows where countries provide flexibility around company/employee contributions and employee hardship access to DC funds, including recent specific changes in response to COVID-19.

The outbreak of COVID-19 is in different stages around the world. Some countries have been feeling the impact of the virus for several weeks, while others are just beginning to navigate a new reality. This special edition of our International Retirement Newsletter explores some of the most pressing issues.

You can read more on the ways Aon can help you with your global retirement plans here

Member Options

This paper gives our initial views on the impact of COVID-19 on member options in UK defined benefit pension schemes.

You can read more on the ways Aon can help you with member options here

 

Employer's Covenant & Cash Management

While the financial impact of Covid-19 is unquantifiable at present, this paper explored the challenges to employer covenants and cash management through the pandemic.

You can read more on the ways Aon can help you with employer covenant and cash management issues here

 

Real-time pensions funding data

Our Pensions Risk Tracker provides daily monitoring of the aggregate funded positions and risk levels of pension schemes of FTSE100 and FTSE350 companies. View real-time data to help you identify risk exposures in markets that are changing by the minute.

Our Risk Analyzer tool provides subscribers with a wealth of daily information and metrics specific to their pension scheme(s) including funded positions, accounting position and risk levels in aggregate or individually, with the ability to change projection assumptions in real time. Use this tool alongside your consultant to facilitate quick decisions in markets that are changing by the minute.

International Retirement

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 sponsoring employers do now? Aon has insights from their IPP Resilience Survey.

 

 

Aon Solutions UK Limited is authorised and regulated by the Financial Conduct Authority. Nothing in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. It should not be taken as financial advice and action should not be taken as a result of this document alone. Consultants will be pleased to answer questions on its contents but cannot give individual financial advice. Individuals are recommended to seek independent financial advice in respect of their own personal circumstances.