With the Pensions Time Bomb› ticking and the ongoing pension reforms in Europe, Aon Consulting has released the latest version of its European Pensions Barometer.
One of the key issues for multi-national companies is the choice of where to site operations, and one of the factors in this choice is labour cost. A significant component of labour costs in all advanced economies is the provision for old age, both through social security contributions and private pension arrangements. While companies can easily know both the costs and the issues of the present day, it is much more difficult to predict changes in the future. The Barometer endeavours to analyse the pressures on pension systems in the EU countries. The aim is to determine which systems are under the greatest pressure, so that material change is likely to be forced to occur in the medium to long term. Such a change could affect labour costs.