Pensions: Coronavirus

Treasury written question – answered on 4th May 2020.

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Photo of Emma Hardy Emma Hardy Shadow Minister (Education)

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the economic downturn caused by the covid-19 pandemic on (a) pension funds and (b) the incomes of people who are reliant on pension payments.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The government continues to actively consider what appropriate actions it can take to protect both the markets and the general public from the impacts of COVID-19. The government is already taking a wide range of steps to support the macro-economy, ensure financial stability and the provision of social safety nets.

Consumers who are already taking a retirement income via an annuity will not be affected by the current situation and any who are reliant on a DB pension will not see a decline in the value of the income they are paid. The state pension is also unaffected and continues to be paid.

In relation to other types of pensions, the value of many investments has fallen significantly and investment volatility is expected for some time to come. However, investments are for the long term. The Financial Conduct Authority, The Pensions Regulator and the Money and Pensions Service published a joint statement urging savers to take their time and visit the Pensions Advisory Service website for free pensions guidance before making any decisions about their retirement savings.

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