MSCI AGR Issue Brief - Global Pension Underfunding Concerns

Nov 21, 2016

There has been much written about a brewing crisis for both private and public pensions funds due to the gap between pension obligations and the resources set aside to fund them.¹ Large levels of underfunding are not just a concern for employees, but for investors as well, as the need for companies to replenish pension funds could negatively affect earnings.²

1 See for example "UK’s Pension Funding Hole Hits 900bn after Brexit", Financial Times, June 26, 2016.

2 See for example "Alcoa’s Results Highlight Risk of Pension Underfunding," Barron’s, October 12, 2016.