Aon Hewitt, the global human resource solutions business of Aon plc (NYSE:AON), today revealed data from its latest DCIndex tracker which highlighted that, in the first quarter of 2012, funds with a higher exposure to equities saw an increase in their projected value at retirementcompared to those with a weighting toward bonds and gilts, which saw a marginal decrease over the period.

The Aon Hewitt DCIndex tracker shows the projected fund value at retirement for UK individuals aged 30, 60 and 65 with defined contribution (DC) pension schemes, as well as the corresponding projected retirement incomes. During the first quarter of this year, ending 30 March, the expected fund values and retirement income for DC members changed as follows:

For a 30 year old, the expected fund value at retirement increased by 9.7%, while the projected retirementincome increased by 3%
For a 60 year old, the expected fund value at retirement decreased marginally by 0.4%, while the projected retirementincome increased by 3.8%
For a 65 year old, the expected fund value at retirement decreased marginally by 0.4%, while the projected retirementincome increased by 3.9%
*For actual figures see notes to editors

Projected retirementincomes for a 60 and 65 year old rose slightly during the period.  This was due to a fall in annuity rates that counteracted the marginal decrease in the expected fund values at retirement.

John Foster, BenefitsConsultant at Aon Hewitt, said:

“The latest figures from the Aon Hewitt DCIndex show that the funds which we typically expect to have a high exposure to equities - chiefly those of younger generations - have seen an increase in their projected retirementvalue as a result of the equity market's positive performance, although some of that will have slipped in recent days.  At the same time, the funds of more mature savers have seen relatively little change in projected values as a result of their concentration in bonds and gilts which have held steady. Despite these funds missing out on the value generated by equities in the first quarter, retirementincomes saw a small increase as a result of a slight fall in annuity prices.”

John Foster continued:

“This quarter’s findings reinforce the message that contributing to a pensionis a long term investment and the importance of ensuring that your asset allocation matches your needs.  The large numbers of people that will be entering into DCschemes as auto-enrolmentis rolled out throughout the UK, highlights the perennial truth that getting the balance right between equities, bonds and gilts is crucially important.

“Under auto-enrolment, there will be more people than ever committing money into pensionschemes, and more people than ever changing between schemes as they switch jobs throughout their careers.  As such, it is vital that default funds incorporate a clear understanding of this when their asset allocation profiles are decided and that employees are adequately informed of their exposure to, and the nature of, differing assets.”

Ends

Media Contact:        Colin Mayes                                      Giles Abbott
                                   Aon Hewitt                                         Capital MSL
                                   01372 733689                                   020 7307 5340
                                   colin.mayes@aonhewitt.com        giles.abbott@capitalmsl.com

Notes to editors

*Fund values and projected retirement incomes (£)            December 2011 March 2012                    30 year old  
Fund value                                                                                     139,734                                                         153,344
Retirement income                                                                        18,092                                                            18,644
60 year old  
Fund value                                                                                      183,541                                                          182,890
Retirement income                                                                         10,956                                                             11,037
65 year old  
Fund value                                                                                       130,862                                                          130,398
Retirement income                                                                            8,123                                                                8,181

About the Aon Hewitt DC Index

The Aon Hewitt DCIndex follows the projected retirementincome of individuals at different ages who contribute 10% of a £25,000 salary to a defined contribution (DC) pensionarrangement and have an existing fund (valued as at September 2007) of £15,000 for age 30 and £150,000 for ages 55 and above.

About Aon Hewitt

Aon Hewitt is the global leader in human resource solutions.  The company partners with organisations to solve their most complex benefits, talent and related financial challenges, and improve business performance.  Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies.  With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees.  For more information on Aon Hewitt, please visit www.aonhewitt.com.

Follow us on Twitter: @aonhewittuk

About Aon

Aonplc (NYSE: AON) is the leading global provider of risk management, insuranceand reinsurancebrokerage, and human resources solutions and outsourcingservices. Through its more than 61,000 colleagues worldwide, Aonunites to empower results for clients in over 120 countries via innovativeand effective riskand people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.comfor more information on Aon and www.aon.com/manchesterunitedto learn about Aon's global partnership and shirt sponsorship with Manchester United.

Giles Abbott
Consultant
81 Whitfield Street, London, W1T 4HG, UK
T: +44 (0) 20 7307 5340 M: +44 (0) 7983 165327 E: giles.abbott@capitalmsl.com
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