Pensions paid out as usual despite corona epidemic
Plummeting stock exchanges affect the valuation of pension providers’ assets but not the payment of pensions.
The Finnish pension providers have invested a considerable part of their assets in global stock markets. As stocks plummet, pension providers suffer unrealized losses in valuations. This poses no threat to pension payments, however. Pensions will be paid out as usual and on time.
The Finnish Centre for Pensions serves its customers as usual over the phone and online. Our customer service points are closed until further notice.
English translation of blog by Director Jaakko Kiander (Finnish Centre for Pensions), published in Finnish on 16 March 2020
Life goes on and pensions are paid as before, despite the corona virus
The corona epidemic is driving many countries into states of emergency. Everything seems to come to a halt in Finland, as well. This is necessary to prevent the spread of the virus. At the same time, isolation significantly affects economy. Predicting a troublesome future, the stock exchanges have plunged globally, and the uncertainty among investors continues.
Small and mid-sized companies in the service and transport business are among the first to be hit in Finland. Customers leave, shows and trips are cancelled. This means a steep drop in turnover and, in the long run, financial difficulties for businesses.
As in other countries, the Finnish government is implementing extreme measures of support in an attempt to prevent the situation from culminating in bankruptcies and unemployment. Part of the measures include concessions to earnings-related pension contributions paid by businesses and the self-employed. Banks are also ready to extend the credit period for both businesses and private households.
The Finnish pension providers have invested a considerable part of their assets in global stock markets. As stocks plummet, pension providers suffer unrealized losses in valuations. This poses no threat to pension payments, however. Pensions will be paid out as usual and on time. Amid this crisis, it is important that as many things as possible continue without disturbance. For households, it is particularly important that wages and pensions are paid. Our pension system safeguards its basic task.
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