8 March, 2018 09:45
After having experienced a record peak in January, the solvency ratio of the pension plans defined benefit plan has experienced a decrease of 1.5 percentage points, to reach 99.8 per cent in February, according to the survey ofAon. The solvency ratio registered in January was the highest post recession, reaching 101.3 %.
On the 1st of march, all the plans surveyed, 49.6 per cent were more than fully funded, representing an increase of 3.1 percentage points compared to the previous month.
Markets too good to be real fragile
“The month of February has demonstrated the extent to which markets are too good to be true are fragile. The pension plans have benefited from higher market valuations and higher yields, but this trend was quickly reversed in February “, stresses Claude Lockhead, partner and executive director of the convenient retirement of the eastern region at Aon.
“The good news is that the solvency of pension schemes remains very strong, and therefore, for plan sponsors that have not yet done so, they can still take steps to mitigate the risks and seek greater diversification,” he added.