On the go: The majority of pension schemes have said that Covid-19 is not having a detrimental effect on their day-to-day operations, but have called for an extension of regulatory easements, according to new research.
The survey conducted by the Pensions and Lifetime Saving Association, which polled 55 schemes, showed that 81 per cent of pension fund professionals believe the crisis is having only little or no impact on the day-to-day running of their scheme.
This is an increase from 67 per cent in April and 42 per cent in March. Furthermore, nine out of 10 schemes (91 per cent) said they are currently operating all business processes smoothly to suit the current environment, the PLSA stated.
Since the start of restrictions in the UK in March as a result of the pandemic, most schemes (85 per cent) have reported that they have not seen an increase in member queries.
When looking to next year, respondents are optimistic about continuing to cope with the fallout of Covid-19. Sixty-three per cent of master trust and Local Government Pension Scheme members surveyed said they do not have concerns about coping with the current situation in 2021, while a quarter said they are confident they could cope for between six months and just under a year.
While pension schemes are being optimistic about the future, they also cautioned that pragmatism needs to remain at the forefront of the Pensions Regulator’s thoughts, the PLSA said.
Almost 60 per cent of respondents are supporting the call for an extension of regulatory easements and flexibilities beyond early 2021.
Nigel Peaple, director of policy and research at the PLSA, noted: “It is important that policymakers and regulators take into consideration the forthcoming difficult economic and investment environment, and make sure the decisions they take next year support schemes in helping savers achieve a better income in retirement.”
