Problems of Pension Provision Caused by COVID-19

Abstract

The corona virus infection (COVID-19) had a destructive impact on the finance and economic system. There were interruptions in business processes, general slowing-down in economic activity, sharp rise in unemployment rate and initial drop in asset value due to finance market contraction. Monetary-credit and taxation-budget policy resulted in even higher interest rates, sharp growth in budget deficit and state debt. These factors affected both the state pension distribution and defined contribution pension systems. The goal of the research is to assess the impact of the corona virus infection (COVID-19) on financial wellbeing of the population and economic development of the country. Conditions were studied, when pensioners could invest their savings. The following methods of academic investigation were used: analysis, forecasting, synthesis, induction, deduction, observation and comparison. A conclusion was drawn about the adverse impact of the pandemic on the pension system and changes in the global inflation and unemployment rates during the period of pandemic worsening in 2020–2021. Forecasts of the mentioned indicators were calculated up to 2024. Feasible measures of people support during the pandemic were proposed. The problem of pension system vulnerability to cyber attacks and various frauds was highlighted.