Amundi Pension Funds Letter n°11

In the wake of the Covid-19 pandemic, a lot of discussion has focused on the worsening of the retirement prospects of savers around the world. Indeed, exceptional policies, such as the possibility of raiding retirement pots in advance and the low interest rate environment supported by dovish monetary policies, could potentially have dramatic impacts on the availability of pensions in the long run.

However, the first quarter of 2021 brought about some welcome and, to some extent, surprising news. The funding ratios of pension funds around the world have generally improved, in contrast to what had been happening in previous years, mostly thanks to the exceptional performance of growth assets. In turn, this improved funding status will eventually lead to a much-desired reduction in the pressure on pension funds’ financial leverage, cash flows and P&L.

You can now read the full whitepaper at the link below