Pandemic puts pressure on global pensions
The combination of low interest rates, a pandemic-ravaged global economy and reduced investment returns are straining pension systems, according to an annual survey.
Covid-19 has also exacerbated gender inequality in pensions, the Mercer CFA Institute Global Pension Index says. Women already retired with less money than men, and the pandemic’s effect on the hospitality and food services sectors, where women are overrepresented, will add to the gap.
Canada’s pension systems held at ninth overall in the 2020 study with a score of 69.3, virtually unchanged from last year. Canada maintained a B grade, placing it behind A-grade Denmark and the Netherlands in a group that includes Australia, Singapore, Germany, Ireland and Chile, among other countries.
The U.S., U.K. and France were in the next tier with C+ grades. “The economic recession caused by the global health crisis has led to lower pension contributions, reduced investment returns and higher government debt in most countries,” wrote Mercer senior partner David Knox, the study’s lead author.
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