v3.25.2
Retirement benefits (Tables)
12 Months Ended
Dec. 31, 2024
Employee Benefits [Abstract]  
Summary of Retirement Benefits by Financial Position
$ million
Dec 31, 2024Dec 31, 2023
Obligations(66,054)(78,024)
Plan assets69,70779,961
Asset ceilings(402)(335)
 Surplus
3,2511,602
Retirement benefits in the Consolidated Balance Sheet:
Non-current assets10,0039,151
Non-current liabilities:(6,752)(7,549)
Non-current liabilities - Pensions(3,874)(4,448)
Non-current liabilities - OPEB(2,878)(3,101)
Total3,2511,602
Summary of Retirement Benefit Expense
$ million
202420232022
Defined benefit plans:
Current service cost, net of plan participants' contributions8027311,100
Interest expense on defined pension benefit obligations2,7573,0721,584
Interest income on plan assets(2,999)(3,417)(1,732)
Interest expense on OPEB obligations154166120
Current OPEB service cost383657
Other [A](457)262246
Total2958501,375
Defined contribution plans514474420
Total retirement benefit expense8091,3241,795
[A]Mainly related to plan amendments and curtailments on pension plans and OPEB plans.
Summary of Remeasurements
$ million
202420232022
Actuarial gains/(losses) on obligations:
Due to changes in financial assumptions on pensions [A]4,445(1,513)28,840
Due to changes in financial assumptions on OPEB [A]249(264)527
Due to experience adjustments on pensions [B](701)(491)(2,956)
Due to experience adjustments on OPEB [B]
(259)2301,480
[D]
Due to changes in demographic assumptions on pensions [C]
445(299)27
Due to changes in demographic assumptions on OPEB [C]
87(38)25
Total4,266(2,375)27,943
Return on plan assets in (shortage)/excess of interest income
(2,319)1,243(20,612)
Other movements(93)44(349)
Total remeasurements1,854(1,088)6,982
[A]Mainly relates to changes in the discount rate and inflation assumptions.
[B]Experience adjustments arise from differences between the actuarial assumptions made in respect of the year and actual outcomes.
[C]Mainly relates to updates in mortality assumptions.
[D]In 2022, experience adjustments in OPEB includes $782 million to reflect the impact of prescription drug rebates.
Summary of Defined Benefit Plan Obligations and Assets
Defined benefit plan obligations

2024
$ million, except where indicated
Pension benefitsOther post-employment benefits
The NetherlandsUK
USA
Rest of the world
OPEB [C]
Total
At January 126,74619,07415,57913,5243,10178,024
Current service cost18614823921538826
Interest expense8478475075561542,911
Actuarial gains
(1,377)(1,793)(997)(22)(77)(4,266)
Benefit payments(1,076)(1,081)(702)(770)(141)(3,770)
Other movements(251)(1)(5,030)
[A]
540(95)(4,837)
Currency translation differences(1,498)(237)(997)(102)(2,834)
At December 3123,57716,9579,59613,046
[B]
2,87866,054
Comprising:
Funded pension plans23,57716,6388,78710,91359,915
Weighted average duration15 years12 years12 years13 years13 years
Unfunded pension plans3198092,1333,261
Weighted average duration15 years8 years11 years11 years
Unfunded OPEB plans2,8782,878
Weighted average duration12 years12 years
[A]Other movements mainly include the contract that the defined benefit pension plan in the USA, Shell Pension Plan, has entered into with a third-party insurance company to settle $5,052 million of pension liabilities. The settlement price consisted of $4,920 million of pension assets.
[B]Rest of the world includes pension plans in Germany ($3,234 million) and Canada ($3,641 million) which are the largest pension plans in this category.
[C]Mainly related to post-retirement medical benefits in the USA.
2023
$ million, except where indicated
Pension benefitsOther post-employment benefits
The NetherlandsUK USA
Rest of the world
OPEB [B]
Total
At January 124,60817,79114,79313,4102,87973,481
Current service cost18414521517936759
Interest expense9048816955921663,238
Actuarial losses
929257832285722,375
Benefit payments(1,032)(1,014)(956)(757)(88)(3,847)
Other movements252(63)189
Currency translation differences9011,014(122)361,829
At December 3126,74619,07415,57913,524
[A]
3,10178,024
Comprising:
Funded pension plans26,74618,73414,69511,29871,473
Weighted average duration16 years15 years11 years13 years14 years
Unfunded pension plans3408842,2263,450
Weighted average duration16 years8 years11 years11 years
Unfunded OPEB plans3,1013,101
Weighted average duration13 years13 years
[A]Rest of the world includes pension plans in Germany ($3,647 million) and Canada ($3,930 million) which are the largest pension plans in this category.
[B]Mainly related to post-retirement medical benefits in the USA.
24. Retirement benefits continued
Defined benefit plan assets

2024
$ million
Pension benefits
The NetherlandsUK
USA
Rest of the world
Total
At January 130,26622,32014,83512,54079,961
Return on plan assets in excess of interest income(34)(2,435)(566)716(2,319)
Interest income9469954875712,999
Employer contributions
236262109
[B]
409
Plan participants' contributions1217736
Benefit payments(1,076)(1,081)(702)(731)(3,590)
Other movements(9)(22)(4,891)
[A]
470(4,452)
Currency translation differences(1,777)(270)(1,290)(3,337)
At December 31 28,33019,5609,42512,392
[C]
69,707
[A]Other movements mainly include the contract that the defined benefit pension plan in the USA, Shell Pension Plan, has entered into with a third-party insurance company to settle $5,052 million of pension liabilities. The settlement price consisted of $4,920 million of pension assets.
[B]Includes a netted amount of $108 million received from a captive structure in relation to pension plans reinsured in Rest of the world.
[C]Rest of the world includes pension plans in Germany ($2,705 million) and Canada ($3,179 million) which are the largest pension plans in this category.
2023
$ million
Pension benefits
The NetherlandsUKUSA
Rest of the world
Total
At January 127,98621,96314,24312,56476,756
Return on plan assets in excess of interest income833(999)6098001,243
Interest income1,0351,0946796093,417
Employer contributions
41934274(23)
[A]
704
Plan participants' contributions1116734
Benefit payments(1,032)(1,014)(957)(703)(3,706)
Other movements(6)(16)(13)17(18)
Currency translation differences1,0201,242(731)1,531
At December 3130,26622,32014,83512,540
[B]
79,961
[A]Includes the netted amount of $212 million received from the captive structure in relation to pension plans reinsured in Rest of the world.
[B]Rest of the world includes pension plans in Germany ($2,730 million) and Canada ($3,504 million) which are the largest pension plans in this category.
The table below presents percentages derived from a weighted average calculation of the investments in the plan assets.
Type of pension assets
20242023
Quoted in active markets:
Equities [A]
12%12%
Debt securities [B]
68%71%
Real estate2%1%
Unquoted
Equities13%12%
Debt securities4%4%
Real estate
6%7%
Investment funds3%3%
Debt repurchase agreements [C]
(12)%(11)%
Other1%—%
Cash3%1%
[A]Equity securities (quoted) are mainly related to investments of the Netherlands pension fund.
[B]Debt securities (quoted) are mainly related to the investments of the UK and the Netherlands pension funds.
[C]Debt repurchase agreements are mainly related to UK member-defined pension plans to fund liability-driven investments. In addition to these contracts, derivatives including interest rate and inflation swaps are used in the principal defined benefit plan in the Netherlands for liability matching strategies.
Summary of Assumptions for Sensitivity Analysis
$ million, except where indicated
Effect of using alternative assumptions
Assumptions used
at nominal rates
Increase/(decrease) in defined benefit obligations
Dec 31, 2024Dec 31, 2023Range
of assumptions
Dec 31, 2024Dec 31, 2023
Rate of increase in pensionable remuneration [A]3.9%3.9%
-1% to +1%
(421)469(828)915
of which the Netherlands [B]
3.3%3.3%
of which the UK
3.5%4.1%
of which the USA
4.6%4.6%
Rate of increase in pensions in payment2.0%1.9%
-1% to +1%
(4,978)6,045(5,599)6,713
of which the Netherlands2.1%2.4%
of which the UK
2.9%2.8%
of which the USA
—%—%
Discount rate for pension plans4.5%4.1%
-1% to +1%
8,641(6,925)10,560(8,472)
of which the Netherlands3.5%3.3%
of which the UK
5.5%4.6%
of which the USA
5.6%4.9%
Inflation rate for defined benefit obligation [C]
2.1%2.0%
-1% to +1%
(5,328)6,494(6,034)7,300
of which the Netherlands2.1%2.4%
of which the UK
3.0%2.9%
Expected age at death for persons aged 60:
Men88 years88 years
-1 year to +1 year
(970)981(1,166)1,143
of which the Netherlands88 years88 years
of which the UK
87 years87 years
of which USA88 years87 years
Women89 years89 years
-1 year to +1 year
(850)874(1,006)1,041
of which the Netherlands90 years90 years
of which the UK
89 years89 years
of which the USA
89 years89 years
Rate of increase in health care costs [D]
8.0%7.0%
-1% to +1%
(295)359(338)422
Discount rate for health care plans [D]
6.0%5.6%
-1% to +1%
390(314)457(358)
[A]Based on active members.
[B]Decrease is mainly due to the Netherlands (WTP).
[C]Excluding US funds in the weighted average inflation rate, because of the insignificant impact on the defined benefit obligation.
[D]Mainly related to post-retirement health care benefits in the USA.