Quarterly risk assessment of the occupational pensions sector
The IORP risk dashboard, based on individual occupational pensions regulatory reporting, summarises the main risks and vulnerabilities in the IORPs sector of the European Economic Area (EEA) for defined contributions (DC) and defined benefits (DB) pension schemes.
It includes a set of risk indicators covering risk categories, such as
- market and credit risks,
- liquidity risks,
- reserve & funding risks,
- ESG risks, and
- cyber risks.
April 2026 IORP Risk Dashboard
Key observations:
The April 2026 Risk Dashboard on Institutions for Occupational Retirement Provision (IORPs) - based on Q4 2025 pension reporting data and end of December 2025 market data - shows all risk categories at medium levels amid the uncertain geopolitical environment.
- Higher inflation projections, driven by high energy prices amid conflicts in the Middle East, is increasingly shaping the macroeconomic environment. Looking ahead, high geopolitical tensions continue to weigh on the risk outlook, with uncertainty surrounding the trajectory and duration of the war in Iran as well as continued conflicts in other regions.
- Financial markets are tested by geopolitical uncertainty. Bond spreads widened and volatility in the equity and corporate markets spiked by end-March. Potential vulnerabilities linked to high valuations along with growing doubts about whether artificial intelligence can live up to investors’ high expectations are adding to sensitivities related to adverse geopolitical developments.
- Liquidity and funding risks remain contained, despite more negative valuations in IORPs’ derivatives positions. Digitalisation and cyber risks remain relevant for IORPs, reflecting continued concerns stemming from geopolitical tensions.
- Despite the challenging environment, Europe’s IORP sector continues to demonstrate resilience. The financial position of Defined Benefit (DB) IORPs have strengthened driven by the combined effect of strong investment returns, higher equity prices and rising long-term interest rates.