What consequences has the pandemic had for private sector DB pension schemes, in terms of longevity risks, funding, investment strategy and progress towards and endgame? David Adams investigates
1 October 2021
As is the case for so many aspects of our lives, it is still too soon to be sure what the long-term impact of the Covid-19 pandemic on private sector DB pension schemes will be. One obvious place to start is the impact on mortality and longevity. The Office for National Statistics (ONS) National Life Tables show a deep decline in annual increases in life expectancy in 2020, caused by a rise in excess deaths during the first wave of the pandemic. Mortality in 2020 was 13.5 per cent higher than expected, according to Public Health England. UK-wide figures hide regional and other demographic variations; and the challenge of discerning the longer-term effects on DB schemes is made more complex by other factors, but we can drive some conclusions.