Are my pensions safe at this time?
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There’s been a lot in the news about the impact of coronavirus on the economy. I’m a widow and I rely on three small pensions to live on. I’m worried – will the virus affect any of these pensions?
Mike Freer replies:
You haven’t said, but I expect that one of your pensions will be an old-age pension paid by the Government of Jersey, or possibly the UK government. The other two pensions are likely to be from a company pension scheme earned when either you or your late husband were working.
You can rest assured that your old-age pension will continue to be paid. The company ones shouldn’t be affected either. A company pension will either be paid directly from the pension scheme or by an insurance company, if the scheme has purchased an annuity to pay your pension. Either way, people who have already retired and are receiving a pension have the highest level of financial protection, even if the pension schemes were to suffer financially. This is because if there weren’t enough money in the pension scheme to cover all of the benefits, the pensioners have priority.
Hopefully that puts your mind at rest in these difficult times.
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