Covid-19 slams retirement adequacy, especially in hard-hit sectors

THE 2020 Mercer CFA Institute study on retirement systems worldwide concluded that most of us will be left with reduced retirement benefits in our advanced years. Retirement adequacy may be compromised by the current global pandemic which has sent the global economy into a recession.

Covid-19 has shown no signs of abating despite initial lockdowns which successfully tamed the rate of increase in infections. Government missteps and behavioural fatigue have been blamed for the second wave in Europe, and it is not a pretty sight going into the winter months in the northern hemisphere.

With the population huddled together in enclosed environments, we may have to contend with another increase in infection rates if fresh government measures fall short. With that, the economies take yet another unavoidable blow to in a bid to stem rising infections.