What are ageing giants?

Ageing giants is a term that refers to very large pension funds where a large portion of the pensions has already commenced or will commence in the short term (for example, within the next 10 years). The term of the liabilities has decreased, making it increasingly difficult to adjust the policy using received pension contributions.

In the event of major shocks in the financial markets, there is a risk that these funds can no longer meet their obligations, in which case they are called "sinking giants".

This term is described, among other places, in the report of the Investment Policy and Risk Management Committee, also known as the 'Frijns Report'.