Implications of Covid-19 Crisis on Public and Private Pension Sectors

Luković, Stevan and Marjanović, Darko and Pjanić, Miloš (2022) Implications of Covid-19 Crisis on Public and Private Pension Sectors. In: Economic and Financial Implications of Covid-19 Crises. Université Côte d'Azur, Nica, pp. 296-312. ISBN 978-2-493478-00-9

Text lukovic et al.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (575kB)

Abstract

After almost two years of coping with the Covid-19 pandemic, the global economy is
still unable to regain pre-Covid growth rates. Governments worldwide have
implemented various policy measures to counter the Covid-19 economic crisis, which
triggered the public finance deterioration. Since public pension systems of many
countries are financed partially through tax revenues, the rise of public expenditures
could pose a danger to the safety of old-age pensions in the future. As for private
pension plans and funds, the prolonged period of low investment return rates prior to
the Covid-19 outbreak followed by amplification in the Covid-19 era has affected their
financial position. However, global investment returns are recovering from the Covid-19 adverse impact, which benefits the private pension sector in maintaining the pre-Covid funded status. Also, the economic growth rate prospects are promising,
combined with the unemployment rate decrease. These trends should mitigate the
negative effects of exemptions from contribution obligations, deferrals in the payment
of contributions, and reduction of contributions. In this way, current and future retirees
would not experience significant drops in retirement benefits.

Item Type:	Book Section
Additional Information:	COBISS.ID=65726985
Uncontrolled Keywords:	public pension system, Private pension sector, Covid-19 pandemic, Economic crisis
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	18 Oct 2022 14:29
Last Modified:	25 Oct 2022 08:53
URI:	http://35.240.28.64/id/eprint/1801
Author Links:	[error in script] No links available.

Actions (login required)

View Item