The European Insurance and Occupational Pensions Authority published its July 2026 Risk Dashboard for institutions for occupational retirement provision, finding that market and asset return risks remain elevated amid geopolitical uncertainty, higher inflation expectations and a weaker economic outlook. The 12-month risk outlook is worsening because of concerns about elevated valuations, a broader market correction and a potential reassessment of risk premiums. Digitalization and cyber risks are also expected to increase, reflecting geopolitical tensions and systemic cyber threats associated with frontier artificial intelligence models. Bond spreads remain contained despite widening slightly in mid-July, but higher financing costs could raise defaults among highly leveraged borrowers, while public credit spreads may not fully reflect risks in private credit markets. The European occupational pensions sector remains resilient, supported by the financial position of defined benefit schemes and positive portfolio performance. The dashboard draws on quarterly first-quarter 2026 and annual 2025 regulatory reporting from 625 institutions, supplemented by market data through the end of June 2026.
European Insurance and Occupational Pensions Authority2026-07-30
European Insurance and Occupational Pensions Authority flags elevated market risks and worsening cyber outlook for pension institutions
The European Insurance and Occupational Pensions Authority found that market risks remain elevated for occupational pension institutions and that the 12-month outlook is worsening amid geopolitical tensions, high valuations and correction concerns. Cyber risks are also rising, although the sector remains resilient due to robust defined benefit scheme finances and positive portfolio performance.