Global Pension Finance Watch: Second quarter 2021

Strong asset performance during Q2 in these regions helped to increase the overall pension index. Performance for the last 12 months has been positive with all regions showing continued improvement, with the exception of Brazil notably falling due to continued decreases in discount rate environment and overall stable asset performance.

While it is always the case that Global Pension Finance Watch captures results at the end of each quarter, we particularly want to highlight the point in time view of this publication in light of the volatility. Willis Towers Watson supports the daily monitoring of pension funded status and other key pension financial metrics for those organizations wishing to inform key business decisions.

About this report

Global Pension Finance Watch, published quarterly, reviews how capital market performance affects defined benefit pension plan financing in major retirement markets worldwide, with a focus on linked asset/liability results. We cover defined benefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K. and the U.S. Specific plan results will vary, often substantially, based on liability characteristics, contribution policy, portfolio composition and management strategy among other factors. The passage of time since quarter end, may also have a significant impact on pension plan financing.

The impact of capital markets on these pension plans is twofold:

• Investment performance on fund assets
• Changes in economic assumptions on plan liabilities (as measured under international accounting standards)

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