How will the current health crisis affect pensions

SydSnott

I am on a "Final Salary" pension and worried that the effects of the Corona Virus might impact my monthly pension income.
I'm told that it is not likely to significantly affect this type of pension, is that right?

Albermarle

That is correct.

Mick70

if you have a final salary pension all risks are with the provider and not yourself, so you can sleep this evening 

atush

the main risk for you is trying to buy Toilet paper and hand sanitizer as the shelves have been stripped bare

Malthusian

It may reduce the scheme's deficit / increase its surplus as it kills off elderly members. So your chances of going into the Pension Protection Fund could be slightly improved. Other than that it is irrelevant to you as others have correctly said.

cloud_dog

atush said:

the main risk for you is trying to buy Toilet paper and hand sanitizer as the shelves have been stripped bare

We've only got 2 months of toilet paper left, should I buy more?

Bravepants

atush said:

the main risk for you is trying to buy Toilet paper and hand sanitizer as the shelves have been stripped bare

The irony of course is that, if people want to protect themselves, they should actually be buying hand sanitizer and then handing it out to other people, not keeping it for themselves!

Dox

Mick70 said:

if you have a final salary pension all risks are with the provider and not yourself, so you can sleep this evening 

Unless of course the employer goes bust as a result of the coronavirus crisis...in which case the PPF normally kicks in (unless the scheme can still pay pensions at least as good as those which would be payable under the PPF rules), albeit there will be some impact on pensions payable in the future.

Malthusian

cloud_dog said:

atush said:

the main risk for you is trying to buy Toilet paper and hand sanitizer as the shelves have been stripped bare

We've only got 2 months of toilet paper left, should I buy more?

Two months should be enough time to commission a plumber to install an Asian-style shower head or a super-sophisticated Japanese toilet and convert to reusable wipes.

STILTON

Reading the budget comments in a D. Express this morning there are moves afoot to change the CPI or RPI which calculate ones yearly increases.
It will be calculated using a new formula which would see peoples pension income if retiring now drop by some 10% when about 85 years of age
Anyone else aware know more?

Mick70

STILTON said:

Reading the budget comments in a D. Express this morning there are moves afoot to change the CPI or RPI which calculate ones yearly increases.
It will be calculated using a new formula which would see peoples pension income if retiring now drop by some 10% when about 85 years of age
Anyone else aware know more?

yes, I have read articles on this , rumoured may happen around 2025 , unsure if it will impact DC pensions ?   But imagine it would impact upon All final salary schemes as going forward the annual rises would be lower , most people seem to be unaware of this proposal