EIOPA - European Insurance and Occupational Pensions Authority

10/30/2025 | Press release | Distributed by Public on 10/30/2025 10:08

EIOPA’s risk dashboard indicates medium risk levels and overall stability for occupational pension funds despite persistent geopolitical uncertainties

The European Insurance and Occupational Pensions Authority (EIOPA) published today its October 2025 risk dashboard for institutions for occupational retirement provision (IORPs). All risk categories are assessed at medium levels amid the uncertain geopolitical environment.

Despite the potential impacts of tariffs, expansionary fiscal measures and ongoing geopolitical instability macroeconomic risks remain at a medium level. GDP growth expectations for the next four quarters have been revised upwards. Credit risks show a modest tightening in sovereign and corporate bonds spreads by end-September, suggesting limited reaction to political tensions thus far. Market and asset return risks eased from high to medium level with lower volatility in the bond and equity markets at end-September 2025, partially offsetting detachments between valuations and fundamentals.

In terms of asset return risks, IORPs' portfolio performance was positive in 2024. Liquidity risks are showing a decreasing trend given the positive developments in IORPs' derivative positions in Q2 2025. In terms of reserve and funding risks, the financial position of defined benefit IORPs strengthened by mid-2025. Digitalisation & cyber risks are at a medium level, albeit with an increasing likelihood of materialisation amid ongoing geopolitical tensions and the uncertainty they bring.

View the Dashboard

Background

This IORP Risk Dashboard, based on the latest IORP reporting data with reference up to the second quarter of 2025, summarises the main risks and vulnerabilities in the IORP sector of the European Economic Area (EEA) for the different schemes, i.e. defined contributions (DC) and defined benefits (DB), through a set of risk indicators. The data is based on Q2 2025 regulatory reporting collected from 625 IORPs. The IORP reporting information is complemented with market data with a cut-off date of end-September 2025.

EIOPA - European Insurance and Occupational Pensions Authority published this content on October 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 30, 2025 at 16:08 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]