How do pensions and coronavirus interact?

Last updated: 25 Nov 2020

The coronavirus has had a major impact on the global economy and especially the stock market. A proportion of the investments that pension schemes make are in stocks and shares and the value of these has reduced because of the current pandemic.

This impacts pensions by reducing how well funded defined benefit schemes are and individually, where members have a defined contribution pension account, the value of this is likely to go down.

It is important to remember that pensions are a long term investment though and over time they will likely recover as they did after the financial crisis between 2007 and 2009.

The state pension is unaffected by fluctuations in the stock market.

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