negative impact of low interest rate

The ultra low interest rate has discouraged savings and encouraged consumptions which is a short term boost for GDP but problematic over long run. There is another negative impact of low interest rate which is not discussed in the market: it increases pension liability. Pension liabilities are discount back to present value by long term interest rate. The lower the rate, the higher PV of liability and a bigger shortfall of pensions. More companies (defined contribution) will have to put more money into their pension because of the low rates.