the Pension funds in the first month of this year, with the coverage rate slightly decline from 103 percent to 101 percent, says a financial services provider, Aon, mon. The pension funds suffered from the turmoil on the financial markets, that is, the corona virus has brought about.
stock markets worldwide have declined due to the fear that the corona virus, the Chinese economy is the second largest in the world, and a significant damage. The pension funds have experienced due to a large part of their investments in stocks have put into it.
in addition, it decreased the rate of interest on bonds of the light. Here, the pension funds also suffer because of this, the so-called discount rate decreases.
This is the interest rate that pension funds and their future liabilities to calculate. In practical terms, this means a lower rate of interest which the funds are actually less of a return can be initiated.
Aon is called pension reductions before the end of 2020, it will still be a realistic scenario.
