LONDON, 04 April 2011 - The latest research from Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation (NYSE:AON) has shown that the majority of employers (63%) offer over 20 investment options to DC scheme members, while just over one in 10 employers (12%) offers no default investment option. Aon Hewitt warns that this array of investment choice may affect employees’ ability to engage with their pensions because too wide a range of options - without necessary guidance - may cause confusion. With 12% of companies not offering a default option, members may be wary of making decisions that they do not fully understand, or which may not suit their personal circumstances.

Despite this, Aon Hewitt’s research also found that employers continue to introduce new investment options. In the past year, among schemes which introduced new funds, a third of them introduced a socially responsible/ethical option and a quarter introduced Shariah compliant funds.

John Foster, DC consultant at Aon Hewitt, said:
“While at a surface level, introducing greater choice is seen as a positive step by employers, this doesn’t necessarily encourage scheme members to understand and fully value their pension.   Being faced with so many investment options can be confusing and overwhelming - to the extent that some members will end up making no choice, or perhaps worse, make a random choice.

“Furthermore, for those confused by the choices of investment, some employers still do not offer the option of a default fund, though this will become compulsory if the plan is to be used for auto-enrolment.

“Employers and trustees should make every effort to engage their employees and members with their pensions and aim to provide the information needed by scheme members to make informed choices suited to their age, expectations and attitudes to risk.  At a time when everyone’s finances are under pressure, employees need to ensure they understand the decisions they are making in order to maximise their retirement income."

John Foster continued:
"Also, given that employees are faced with a choice of funds, it is sensible to have a default investment option available for consideration, as well as having the necessary governance framework in place to ensure that as funds are added, others are removed if they cease to perform, or if they no longer fit within a clearly defined and articulated investment strategy.

“By encouraging scheme members to be engaged with their pension activity, and by proactively managing the range of funds offered, employers and trustees can help their employees and members understand that they really can influence their financial future. And not least because with the impending removal of a default retirement age, long term savings are as beneficial to employers as they are for employees.

"We as a society cannot afford – quite literally – for companies not to maximise their workers’ chances of understanding and getting the most from their pension. By increasing engagement of employees, organisations will then also benefit from a better motivated workforce that can afford to retire when the time comes.”

ENDS

Notes to editors:

*Aon Hewitt Employee Benefits and Trends Report - The  UK Benefits and Trends Report offers insight into what employers are doing now and what actions they plan to take in the future on DC pensions, health and risk benefits and flexible benefits. The 2010 survey polled 485 employers on various issues relating to employee benefits and pensions.

About Aon Hewitt
Aon Hewitt is the global leader in human capital consulting and outsourcing 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.

About Aon
Aon Corporation (NYSE:AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital solutions and outsourcing. Through its more than 59,000 colleagues worldwide, Aon unites to deliver distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally in over 120 countries. Named the world's best broker by Euromoney magazine's 2008, 2009 and 2010 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on revenues in 2007, 2008 and 2009, and Aon was voted best insurance intermediary 2007-2010, best reinsurance intermediary 2006-2010, best captives manager 2009-2010, and best employee benefits consulting firm 2007-2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and http://www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.

Media Contacts:

Colin Mayes
Aon Hewitt
01372 733689
colin.mayes@hewitt.com

Supriya Mathur
Capital MSL
020 7307 5347
supriya.mathur@capitalmsl.com