Will COVID-19 usher in a ‘new normal’ in pensions? Or will it accelerate trends that were already evident before the crisis? Some sectors and industries will see entirely new ways of working. This is unlikely to apply in pensions. Instead, our view is that the COVID-19 crisis will lead to an ‘accelerated normal’. In other words, COVID-19 will not be midwife for the birth of new trends in the world of pensions. Instead, it will be a catalyst accelerating trends that were already in evidence before the crisis.

Trustees should consider strategically how their scheme is set up to respond to the acceleration of these trends.

Key action points for trustees

1. Review your scheme against the key industry trends

Before this year was hijacked by COVID-19, a number of emerging trends were evident in the UK’s pensions industry. In our view, these trends will be accelerated by coronavirus and the resulting social and economic changes. These trends include reliance on technology, consolidation, exible governance, real-time information and data, value for money, environmental, social and governance (ESG) investment, and an increasing focus on long-term objectives and risk planning. Trustees should review the operation of their scheme against these key industry trends.

2. Consider altering your response to the accelerating trends

Trustee boards should set aside time to consider strategically whether there is a need to adjust how the scheme operates, implement short term plans and make amendments to medium and long term plans. This will help to put the scheme in a stronger position to respond positively to the challenges and opportunities that will result from the postCOVID-19 acceleration of the key trends identied in this Insight.

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