The Implications of the COVID-19 Pandemic for Pensions
COVID-19 and the lockdowns have had a big global economic effect, as well as increasing mortality. We examine the effects of COVID-19 and the resulting relaxations of pension regulations on pension schemes. Those who transfer their pension or withdraw cash from their pension pot while asset prices are depressed by COVID-19 are losers; as are members of defined benefit schemes with a deficit whose employer fails due to COVID-19. The increased mortality from COVID-19 will have a minimal effect on pensions. If economies recover to pre-COVID-19 levels, the long run effects on pensions should be small.
Keywords: Lockdown • COVID-19 • Coronavirus • Pension scams • Pension transfers • Pension withdrawals • Longevity • State pensions • Pensions • Pension contributions • Mortality