As of: March 26, 2024, 8:48 p.m
By: Ulrike Hagen
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According to analyses, the capital market recovery is having a positive impact on the pension plans of DAX companies.
Some companies paid their pensioners particularly high company pensions.
Munich - The expenditure on company pensions at the 40 DAX companies reached impressive heights last year; according to studies, the DAX companies spent a total of 13.9 billion on pensions in 2023, which is 4.1 percent of sales.
In previous years, however, it was even 5.0 to 5.5 percent.
Corporations with long-standing pension schemes, such as Volkswagen, Siemens, Bayer, BASF, Allianz and Mercedes-Benz, pay out the most pensions to their pensioners - and, more importantly, they also have the highest pension obligations overall.
This emerges from current balance sheet evaluations by the management consultancy Willis Towers Watson (WTW), which are available to
merkur.de
from IPPEN.MEDIA.
According to analyses, the capital market recovery is having a positive impact on the pension plans of DAX companies.
Some companies paid their pensioners particularly high company pensions.
(Symbolic photo) © Imago/Westend61
Company pension provision: coverage ratio of DAX pensions “stable at a high level”
For the “DAX Pensionswerke 2023” study, 34 annual reports from a total of 40 DAX companies were evaluated.
For six companies whose current data has not yet been published, WTW took the previous year's values into account and used them to make projections.
The result: It's not just the shareholders of German DAX companies that can be happy because a dividend record is imminent despite geopolitical crises and a sluggish economy.
The companies are also “stable at a high level” with an average coverage ratio of 79 percent for pension obligations, according to WTW.
These 20 DAX companies paid the most company pensions (bAV) to their employees in 2023:
DAX group |
Total pension payments in EUR million |
Siemens AG |
1,811 |
Volkswagen AG |
1,614 |
Bayer AG |
1,122 |
BASF SE |
1,118 |
Eon SE |
1,101 |
Mercedes-Benz Group AG |
937 |
Allianz SE |
855 |
German Post AG |
764 |
Deutsche Bank AG |
746 |
RWE AG |
744 |
Deutsche Telekom AG |
578 |
Airbus SE |
550 |
Henkel AG & Co. KGaA |
237 |
Continental AG |
231 |
Daimler trucks |
230 |
Siemens Healthineers AG |
194 |
Munich Reinsurance AG |
175 |
Merck KGaA |
147 |
Covestro AG |
135 |
Siemens Energy AG |
134 |
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257 billion euros in pension assets – DAX companies invest a lot in their company pensions
In 2023, the 40 DAX companies, which employ four million people worldwide and have total assets of 5.3 trillion euros, will have invested an additional 4.7 billion euros in their pension assets in order to secure current and future company pensions.
This means that the companies' total pension assets rose to 257 billion euros.
The development of the last few years shows that the pension funds of the largest German companies are well positioned.
Dr.
Johannes Heiniz, Head of General Consulting, WTW Germany
Company pensions – these DAX companies pay the most for their pensioners
Mainly due to the fall in interest rates, companies' pension obligations have also risen to a total of 326 billion euros, 5.8 percent more than in the previous year.
“This three-digit figure includes the current value of all benefits, especially pension payments, that companies have to make to their current and future company pensioners,” explains Hanne Borst, Head of Retirement at Willis Towers Watson to
IPPEN.MEDIA
, “so it reflects what the corporations have spent a total of their employees on company pension schemes and will spend on pensioners.”
“Pension funds are well positioned” – but expensive baby boomers lead to higher burdens
“The development of the last few years shows that the pension funds of the largest German companies are well positioned,” said Dr.
Johannes Heiniz, Head of General Consulting at WTW.
An important factor, because pension burdens will continue to rise in the coming years.
In the coming years, the pension burden for companies will increase in the short term - because the baby boomers will retire.
According to the Federal Statistical Office (Destatis), this will affect 12.9 million employees by 2036, which corresponds to almost 30 percent of the workforce available on the labor market.