Defined benefit plans (Tables)

12 Months Ended

Dec. 31, 2018

	2018		2017
Retirement benefit plans		3,714		3,657
Other post-employment benefit plans		275		293
Total defined benefit plans		3,989		3,950

Retirement benefit plans in surplus		-		55
Other post-employment benefit plans in surplus		-		-
Total defined benefit assets		-		55

Retirement benefit plans in deficit		3,714		3,712
Other post-employment benefit plans in deficit		275		293
Total defined benefit liabilities		3,989		4,005

Summary of Movements of Defined Benefit Plans

				2018								2017
Movements during the year in defined benefit plans	Retirement benefit plans			Other post- employment benefit plans			Total		Retirement benefit plans			Other post- employment benefit plans			Total
At January 1		3,657			293			3,950		4,453			314			4,767
Defined benefit expenses		192			13			206		242			19			262
Remeasurements of defined benefit plans		157			(23	)		134		(233	)		10			(224	)
Contributions paid		(234	)		-			(234)		(163	)		-			(163	)
Benefits paid		(99	)		(19	)		(118)		(108	)		(19	)		(128	)
Net exchange differences		37			11			47		(133	)		(31	)		(164	)
Other		5			-			5		(400	)		-			(400	)
At December 31		3,714			275			3,989		3,657			293			3,950

Summary of Amounts Recognized in Statement of Financial Positions

The amounts recognized in the statement of financial position are determined as follows:


				2018								2017
	Retirement benefit plans			Other post- employment benefit plans		Total			Retirement benefit plans			Other post- employment benefit plans		Total
Present value of wholly or partly funded obligations		4,027			-		4,027			4,389			-		4,389
Fair value of plan assets		(3,525	)		-		(3,525	)		(3,622	)		-		(3,622	)
		502			-		502			767			-		767
Present value of wholly unfunded obligations ¹		3,212			275		3,487			2,890			293		3,183
At December 31		3,714			275		3,989			3,657			293		3,950

As all pension obligations are insured at subsidiary Aegon Levensverzekering almost all assets held by Aegon Nederland backing retirement benefits of EUR 2,568 million (2017: EUR 2,457 million) do not meet the definition of plan assets and as such were not deducted in calculating this amount. Instead, these assets are recognized as general account assets. Consequently, the return on these assets does not form part of the calculation of defined benefit expenses.

Summary of Fair Value of Plan Assets

The fair value of Aegon’s own transferable financial instruments included in plan assets and the fair value of other assets used by Aegon included in plan assets was nil in both 2018 and 2017.


				2018									2017
Defined benefit expenses	Retirement benefit plans			Other post- employment benefit plans			Total			Retirement benefit plans			Other post- employment benefit plans			Total
Current year service cost		121			10			131			148			11			158
Net interest on the net defined benefit liability (asset)		87			8			96			99			10			109
Past service cost		(16	)		(5	)		(21	)		(5	)		(1	)		(6	)
Total defined benefit expenses		192			13			206			242			19			262

													2016
										Retirement benefit plans			Other post- employment benefit plans			Total
Current year service cost											127			13			140
Net interest on the net defined benefit liability (asset)											123			11			134
Past service cost											53			(2	)		50
Total defined benefit expenses											302			22			324

Summary of Breakdown of Plan Assets for Retirement of Benefit Plans


			2018								2017
Breakdown of plan assets for retirement benefit plans	Quoted		Unquoted		Total		in % of total plan assets		Quoted		Unquoted		Total		in % of total plan assets
Equity instruments		106		5		111		3%		127		4		131		4%
Debt instrument		369		343		712		20%		397		411		809		22%
Real estate		-		111		111		3%
Derivatives		-		149		149		4%		-		254		254		7%
Investment funds		11		1,945		1,956		55%		5		2,027		2,032		56%
Structured securities		-		-		-		0%		-		-		-		0%
Other		14		471		484		14%		25		372		397		11%
At December 31		500		3,025		3,525		100%		554		3,068		3,622		100%

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations

The principal actuarial assumptions that apply for the year ended December 31 are as follows:


Actuarial assumptions used to determine defined benefit obligations at year-end	2018		2017
Demographic actuarial assumptions
Mortality		UK mortality table ¹⁾		UK mortality table ²⁾

Financial actuarial assumptions
Discount rate		2.94%		2.56%
Price inflation		3.32%		3.29%

¹	Club Vita tables based on analysis of Scheme membership CMI 2017 1.5%/1.25% p.a. (males/females)

²	Club Vita tables based on analysis of Scheme membership CMI 2014 1.5%/1.25% p.a. (males/females)

The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per year-end:


	Estimated approximate effects on the
	defined benefit obligation
	2018			2017
Demographic actuarial assumptions
10% increase in mortality rates		(34	)		(44	)
10% decrease in mortality rates		38			50

Financial actuarial assumptions
100 basis points increase in discount rate		(235	)		(299	)
100 basis points decrease in discount rate		313			412
100 basis points increase in price inflation		119			169
100 basis points decrease in price inflation		(192	)		(248	)

Commissions and expenses [member]

Statement [LineItems]

Summary of Movements of Defined Benefit Plans

Movements during the year of the present value of the defined benefit obligations	2018			2017
At January 1		7,572			8,560
Acquisition of subsidiary		-			-
Current year service cost		131			158
Interest expense		213			230
Remeasurements of the defined benefit obligations:
- Actuarial gains and losses arising from changes in demographic assumptions		(28	)		30
- Actuarial gains and losses arising from changes in financial assumptions		(102	)		29
Past service cost		(21	)		(6	)
Contributions by plan participants		11			12
Benefits paid		(409	)		(523	)
Net exchange differences		144			(519	)
Other		5			(400	)
At December 31		7,514			7,572


Movements during the year in plan assets for retirement benefit plans	2018			2017
At January 1		3,622			3,793
Interest income (based on discount rate)		117			121
Remeasurements of the net defined liability (asset)		(264	)		283
Contributions by employer		245			175
Benefits paid		(291	)		(396	)
Net exchange differences		96			(355	)
At December 31		3,525			3,622

Aegon United Kingdom [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations

The principal actuarial assumptions that apply for the year ended December 31 are as follows:


Actuarial assumptions used to determine defined benefit obligations at year-end	2018	2017

Demographic actuarial assumptions
Mortality	US mortality table¹	US mortality table²

Financial actuarial assumptions
Discount rate³	4.22%/4.05%	3.55%
Salary increase rate	3.85%	3.85%
Health care trend rate	7.00%	7.40%

¹	U.S. Society of Actuaries RP2014 mortality table with Scale MP2018.

²	U.S. Society of Actuaries RP2014 mortality table with Scale MP2017.

³	Aegon USA has separate discount rates beginning with 2018 – 4.22% for all pension plans and 4.05% for post retirement welfare plan.


	Estimated approximate effects on the defined benefit obligation
	2018	2017

Demographic actuarial assumptions
10% increase in mortality rates	(70)		(76	)
10% decrease in mortality rates	77		83

Financial actuarial assumptions
100 basis points increase in discount rate	(351)		(402	)
100 basis points decrease in discount rate	430		498
100 basis points increase in salary increase rate	29		38
100 basis points decrease in salary increase rate	(26)		(33	)
100 basis points increase in health care trend rate	12		15
100 basis points decrease in health care trend rate	(11)		(13	)

Target Allocation of Plan Assets for Retirement Benefit Plans for the Next Annual Period

Aegon United States of America [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations


		Target allocation of plan assets for retirement benefit plans for the next annual period is:
Equity instruments		19-28%
Debt instruments		47-58%
Other		20-28%

Aegon Nederland N.V. [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations

The principal actuarial assumptions that apply for the year-ended December 31 are as follows:


Actuarial assumptions used to determine defined benefit obligations at year-end	2018	2017
Demographic actuarial assumptions
Mortality	NL mortality table ¹	NL mortality table ¹

Financial actuarial assumptions
Discount rate	1.74%	2.09%
Salary increase rate ²	Curve 2018	Curve 2017
Indexation ³	57.75% of Curve 2018	44.10% of Curve 2017

¹	Based on prospective mortality table of the Dutch Actuarial Society with minor methodology adjustments.

²	Based on Dutch Consumer Price Index.

³	Based on Dutch Consumer Price Index.

The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions of the retirement benefit plan would have the following effects per year-end:


	Estimated approximate effects on the defined benefit obligation
	2018		2017
Demographic actuarial assumptions
10% increase in mortality rates	(81	)	(69	)
10% decrease in mortality rates	90		77

Financial actuarial assumptions
100 basis points increase in discount rate	(534	)	(447	)
100 basis points decrease in discount rate	733		605
100 basis points increase in salary increase rate	18		4
100 basis points decrease in salary increase rate	(18	)	(4	)
25 basis points increase in indexation	167		140
25 basis points decrease in indexation	(152	)	(128	)

Target allocation of plan assets for retirement
benefit plans for the next annual period is:

Equity instruments

Debt instruments