A new survey released by Allianz Dresdner Asset Management focuses on the developments taking place in the European State pensions systems and the measures employed by individual States to promote occupational and individual pension schemes.
According to Johann Goldbrunner, ADAM Executive Director: "The purpose of the study is to analyse pension market growth in Europe and identify business potential for asset managers".
An annual average growth of 7.5 percent is expected in the European pension market with Germany, France and Italy accounting for almost 55 percent of the 510 billion euro growth.
ADAM: New survey about the European pension market
Allianz Dresdner Asset Management (ADAM) expects the European pension market to grow by 510 billion euros until 2010. Germany, France and Italy account for most of the growth, according to a new survey.
Rise in State pension payments
A 30 percent rise in State pension payments in percent of GDP is expected (from currently 10.5 percent to more than 13.0 percent by 2030) making further reforms urgently necessary. The goal is to reduce State pension benefits thus creating an urgent need for occupational and private pension provision.
The UK, Netherlands and Switzerland are ahead of the rest of Europe in terms of asset funded old-age pensions, the other countries being expected to catch up at differing paces, thereby offering interesting potential for asset managers.
Europe shifts towards defined contribution pension schemes with a limited employee risk. Risk management instruments e.g. Constant Portfolio Protection Insurance (CPPI) strategies and Asset liability models are the management orientated solutions.
The UK, Netherlands and Switzerland are ahead of the rest of Europe in terms of asset funded old-age pensions, the other countries being expected to catch up at differing paces, thereby offering interesting potential for asset managers.
Europe shifts towards defined contribution pension schemes with a limited employee risk. Risk management instruments e.g. Constant Portfolio Protection Insurance (CPPI) strategies and Asset liability models are the management orientated solutions.
New products to solve pension problems
Allianz Dresdner Asset Management has launched company-specific risk management products and tailored pension funds which are specifically designed to deal with the pension crisis.
Johann Goldbrunner, Executive Director, says: "Pension liabilities should be separated from operational business. We have developed solutions and have a strategic advantage as a financial full-service provider. Initial sales have been successful".
Especially Germany has hardly started the process of asset funding old-age pensions. According to Brigitte Miksa, Head of Pensions Business at dbi, Allianz Dresdner Asset Management´s institutional arm in Germany: "There is a considerable need for companies to analyse market risks and balance-sheet effects of the traditional forms of entitlement to occupational pensions. In terms of sales and advice, we can draw on the experience and expertise of the entire Allianz Group to benefit our clients".
Johann Goldbrunner, Executive Director, says: "Pension liabilities should be separated from operational business. We have developed solutions and have a strategic advantage as a financial full-service provider. Initial sales have been successful".
Especially Germany has hardly started the process of asset funding old-age pensions. According to Brigitte Miksa, Head of Pensions Business at dbi, Allianz Dresdner Asset Management´s institutional arm in Germany: "There is a considerable need for companies to analyse market risks and balance-sheet effects of the traditional forms of entitlement to occupational pensions. In terms of sales and advice, we can draw on the experience and expertise of the entire Allianz Group to benefit our clients".
Features of the new product concept
- Pension funds and other instruments with and without capital maintenance guarantees (Constant Portfolio Protection Insurance);
- Contractual Trust Arrangements (CTA), i.e. the placement of company pension liabilities into "externally" held trust solutions, thereby removing the pension liabilities from the balance sheet and improving important balance sheet ratios;
- Innovative new concepts in Human Resource Management e.g. "Time-value funds" allowing employees to deposit "time worked" into special funds to be used to increase life-long work-time flexibility (sabbaticals, pensions);
- IT platform for the administrative processing and management of pension liabilities.
Thus Allianz Dresdner Asset Management has developed specific asset funding solutions to support both medium-sized and large companies alike.
- Contractual Trust Arrangements (CTA), i.e. the placement of company pension liabilities into "externally" held trust solutions, thereby removing the pension liabilities from the balance sheet and improving important balance sheet ratios;
- Innovative new concepts in Human Resource Management e.g. "Time-value funds" allowing employees to deposit "time worked" into special funds to be used to increase life-long work-time flexibility (sabbaticals, pensions);
- IT platform for the administrative processing and management of pension liabilities.
Thus Allianz Dresdner Asset Management has developed specific asset funding solutions to support both medium-sized and large companies alike.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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