Company pensions are stable despite the crisis: If a company does not survive, the company pension is secured by the Pension Insurance Association.
Because of the slump in prices on the stock exchange, many people worry about their retirement provisions. Heinke Conrads, specialist at Willis Tower Watson, explains why company pensions are stable despite the crisis and why shares are essential for pension investors.
Are corporate pensions at risk from the corona crisis and falling markets?
In the case of company pensions in Germany, the employer is responsible for the fulfillment of the promised benefits. The capital markets are not primarily relevant for this, but primarily the stability and profitability of the company as well as the sustainable and crisis-proof design of the promised company pensions. Many companies have done their homework here in the past few years, which is of benefit to them now in the crisis. Of course, the Corona crisis represents an unprecedented challenge for the national economy and also for individual companies. If a company does not survive this crisis, the Pension Insurance Association is a tried and tested facility for securing company pensions at one Insolvency.