ROTTERDAM (ANP) – Pension funds are benefiting from the sharp rise in stock prices last month. According to Aon Corporation, their financial position improved significantly in April as a result, increasing the likelihood of pension increases once again.
The unrest surrounding the outbreak of the Iran war and rising energy prices had dealt pension funds a blow in March due to sharp declines in financial markets. The average funding ratio, an indicator of the funds’ financial health, fell from 128 to 123 percent.
However, partly due to the ceasefire and the extension of negotiations between the US and Iran, stock markets have been rising again recently. According to Aon, the slight increase in interest rates was also favourable for pension funds.
The average funding ratio has shot up sharply, to 132 percent. This means that pension funds have 1.32 euros in cash for every euro of promised pension. Later this year, they will determine the level of pensions for next year.
@anp | NEWS BRAINPORT
